SOUTHAMPTON looks set to lose out on Swedish furniture giant IKEA - to Portsmouth.

Council leaders and IKEA bosses have been battling since 2000 to open a store in the city which would bring thousands of shoppers from all over the south into Southampton.

But, today the Daily Echo can reveal that a government planning inspector has said the chosen former Pirelli site in West Quay Road is not suitable - because it isn't close enough to the heart of the city centre!

The ruling means IKEA, who want to build a giant retail store somewhere on the south coast, may go down the road to Portsmouth.

The bombshell news has been branded as absurd by council chiefs who have vowed to continue working with the company to try and find a suitable location.

A major store would have been a huge draw to the city for thousands of people across the south and brought millions into the Southampton economy for other businesses in the city.

IKEA bosses say they do not want to turn their backs on Southampton but admit they may be forced to look at Portsmouth as an alternative in a bid to open a store soon.

Full story, see page three of tonight's Daily Echo.