A multi-million pound scheme for a leisure complex and a new school has collapsed.

The deal would have involved selling the Stockbridge Road site of the 1,500-pupil Chichester High School for Girls which currently operates from two sites.

A multiplex cinema, bowling alley, health club, hotel and restaurants would have been built.

West Sussex County Council was going to use £6 million from the proceeds to build a modern single school on the other site, in nearby Kingsham Road.

But the deal has foundered, despite developers obtaining planning permission.

The development company Citygrove, which was to have purchased the site, has blamed a downturn in the leisure market.

The company put in a revised offer for the site but the council refused it because it would not be enough to finance the school.

Council officers said they took advice from a firm of consultants about putting the site back on the market.

A statement said: "We have been advised that there is no merit in remarketing at the present time as it could result in a lower price being offered."

The council said it does not have enough money to pay for the school scheme itself.

Senior officers believe it could be between three and four years before the new school is built.

The council's Cabinet member for resources, Colin Waller, said he was disappointed for the school and people in Chichester.

He said: "These people will not now be getting badly-needed leisure facilities.