Developers desperate to win the multi-million pound Gateway contract want to bulldoze and re-build Croydon's Fairfield Halls as part of the deal.

Stanhope has put its controversial suggestion to council officers who, it is thought, are unlikely to sanction the plan.

One leading councillor, joint deputy leader Dudley Meade, said Stanhope's attempt to get the Gateway contract by replacing the aging arts complex lacked credibility.

Rival construction firm Arrowcroft's plan for the site opposite East Croydon station, which would include a 12,500 seat arena, has long been the council's preferred option for the largely vacant plot.

But Stanhope, which owns part of the Gateway site, has not given up the fight to land the contract and is hoping its latest audacious plan will swing the council in its favour.

A spokesman for the company said: "We know the council is having some difficulties with Fairfield Halls in terms of maintaining it, so we want to work with the council to help them find a solution and at the same time talk to them about our plans for the Gateway site.

"The starting point is that we will replace Fairfield Halls with a building of quality. The new building would replace the three existing halls, particularly the world famous concert hall with its fantastic acoustics."

Councillor Mead, however, was less enthusiastic. He said: "It seems to me this is their last real throw of the dice. To build a new Fairifield Halls of a similar ilk would cost in excess of £100million.

"To me there is a credibility gap in the proposals."

A council spokesman said: "The council has been approached by Stanhope over a considerable period with a number of variations for a redevelopment scheme that it hopes will elicit support.

"However, none have been acceptable. It has always been the case that the council wants to secure additional regenerative benefits for Croydon from redevelopment of the Gateway site.

"The scheme proposed by Arrowcroft includes a large-capacity, indoor arena, which does achieve this objective.

"Nothing that Stanhope has so far brought to the council's attention compares to the regenerative value of an arena."