WORCESTER City directors have rubbished claims the club has been hit with a u-turn from St Modwen on releasing it from a contract to build a stadium at Nunnery Way.

Reports earlier today suggested the developer is asking for “substantial financial compensation” to scrap the old deal which in turn threatens the club.

St Modwen has released a statement insisting the claims are completely wrong, and vice-chairman Colin Layland has also rejected it outright.

The club is still finalising the terms to end the contract, but says its existence is not under threat because of it and no u-turn whatsoever has been made by St Modwen.

Mr Layland said: “The bottom line is that we are still talking to St Modwen. It’s not true at all.

“I can’t give people assurances it will be sorted by Monday, because these things take time and we haven’t got a final figure.

“But there’s no truth in this.”

The club also produced a joint statement saying they are now aiming to conclude the matter “swiftly” and move on.

The developers have also hit out by saying it is not asking for more money from the club, or changing any terms and conditions.

It read: “We refute the claim that St. Modwen is demanding substantial financial compensation beyond the original terms agreed with the football club.

“Both parties continue to have productive talks and look forward to concluding this matter which ultimately helps to safeguard the club’s future.”

The club left St George’s Lane in April and is playing matches at Kidderminster’s Aggborough stadium while it bides its time to return to Worcester.

It is hoping to strike a deal with the city council to come back home, ideally on land at Perdiswell near the current leisure centre.