£2m a month cost of empty Wembley

A spokesman for Wembley said: "In essence, in funding terms, the next move is out of our hands. But there is a lot to be considered in terms of current costs." One insider added: "We are effectively talking about walking away and just leaving a security guard. That's what mothballing means."

Last night's announcement was followed immediately by a Government briefing in which it was made clear that ministers would not sign a "blank cheque" to rescue the scheme. Instead, a committee headed by Home Secretary Jack Straw will spend the next six weeks examining the whole saga.

Sir Rodney Walker, brought in as WNSL chairman after the failure of his predecessor, Ken Bates, to raise £410m from the City, may now decide to take a back seat, although he will not resign.

He is known to be bitterly disappointed at his failure to find a solution to the funding issue. Crozier, who was also involved in England's failed bid to bring the 2006 World Cup to this country, believes he cannot be blamed for the Wembley debacle.

Culture Secretary Chris Smith also resisted calls for him to quit today. Asked whether the crisis was a resignation issue he said: "Not for myself because, you have to remember of course, that this has been a football issue."

He said the review headed by Straw would consider all options, including building a new stadium elsewhere. Birmingham emerged today as a possible alternative. But Smith said: "I think Wembley starts as a front runner as a plan because the FA own the land."

The question for both men is, what happens now? The options include:

Scrapping plans for Wembley and considering a new site, either elsewhere in the capital or outside London.

Sticking with the original design brief for a 90,000-seater stadium with a hotel and office block and trying to find the money.

Refurbishing the old stadium at a cost of at least £200m, with a capacity of only 60,000.

Going back to the original design brief for the national stadium, drawn up by Sport England, which was for an 80,000-seat multi-purpose stadium catering for football, rugby and athletics.

Joining forces with an anchor tenant such as Premiership club Arsenal.

If Wembley is scrapped, the question then will be what happens to the site? The FA bought the land and stadium with a £120m Lottery grant and would have to pay that back if they don't build a new stadium there.

So they would be saddled with a debt and a derelict site which does not have planning permission for anything other than a stadium and related buildings.

Scrapping Wembley would also mean the loss of £130m of investment earmarked for the regeneration of roads, tube and train stations and the industrial estate surrounding the stadium.

Councillor Ann John, leader of Brent Council, added: "After the recent uncertainties and delays we welcome the Government's intervention and we will give ministers every help we can to find a viable solution to keep the stadium at Wembley. We won't let the Wembley dream die."

The Government's wide-ranging review will also look at plans for a new £95m national athletics stadium at Picketts Lock which is being built to host the World Championships in 2005. If track and field could be included in a cheaper, revamped Wembley the sport might consider withdrawing their bid for the event in 2005 and asking to stage it in 2007 instead, giving the scheme more time.

There will also be a fresh look at how a future Olympic bid for London might fit into any new stadium plans. Mayor of London Ken Livingstone and the British Olympic Association favour a new arena at Stratford.

But whatever the outcome of Straw's investigation, he is unlikely to conclude it is feasible to build two 80,000-capacity Olympic stadiums in the capital.

In a statement issued today Livingstone laid the blame for the latest Wembley mess directly at the FA's door. He said: "I believe the FA are not being realistic and support the Government's decision not to bail them out.

"The FA must stand on their own two feet and invest in the stadium. As Mayor of London I am committed to the infrastructure around Wembley.

"I am willing to work with all parties to get the Wembley stadium back on track. But I firmly believe that the FA must fulfil their financial responsibilities of building a world-class stadium in London without further government assistance.

"This stadium is being built for ordinary football supporters and will be paid for with supporters' money. The FA should put these fans first."

Crozier hit back, however, saying the organisation simply could not support the demands of £125m up front and £55m-a-year to service loans. "A private organisation, especially one as small as ours, cannot take on a risk like that," he said. "That's common sense. The scale of the commitment required would put our own future in jeopardy."

England games will continue to be played at Premiership grounds around the country while finals like the FA Cup and Worthington Cup Finals will, for the foreseeable future, stay at Cardiff's Millennium Stadium.