SOUTHAMPTON’S planned flagship arts complex has been hit by another setback after a decision on its future was delayed for a third time.

This month Arts Council England had been expected to finally announce whether it would commit a vital £5.7m grant towards the Southampton New Arts Complex.

As revealed by the Daily Echo last month, there were fears the former Tyrrell and Green site could lay empty for a decade if the cash was withdrawn.

However, a spokeswoman for the arts organisation said it would be making no decision at this month’s national board meeting.

She said the decision had been deferred until July 22 and that it was continuing to work with Southampton City Council to address their concerns.

“As a result of recent discussions between the Arts Council and Southampton City Council both parties have agreed that more time is needed in order for us to work together to address our concerns,” she said.

“We are in absolute agreement about the importance of the project and its potential to play a key role in the success of the Cultural Quarter.

“Our commitment to the wider cultural and economic vision for Southampton remains.

“That is why it is vital that we pause at this stage to carefully consider our next steps, which will be concluded on July 22.”

The Daily Echo understands city council bosses had asked if they could be given an “in principle assurance” about the grant, but the request was turned down.

Doubts over the multi-million pound grant emerged earlier this year and Arts Council England last month said it has “significant concerns” about the redesigned project.

Set to open in 2014, the development was set to feature shops, restaurants, luxury apartments and house four of the city’s arts organisations.