The developer behind Brighton’s £100m Circus Street scheme is to re-tender the project after failing to agree a price with contractors.

The regeneration scheme involves plans for 142 flats, 450 student rooms, 38,000 sq ft of office space as well as a new dance studio, library and academic buildings for the University of Brighton.

But two years after planning permission was granted for the public private partnership, which includes Brighton and Hove Council and the University, construction has still not started.

Originally it had been hoped construction could start to transform the derelict fruit and vegetable market site before the end of last year with the whole project completed by 2017.

Contractors Kier and Osborne have both been chasing a building deal but are understood to have failed to agree prices with developer U+I.

Now the developer is going back to the drawing board and plans to re-tender the project.