Election hopeful David Logan was dropped by the Conservatives for backing the Falmer stadium bid.
The Tory candidate for Kemp Town in Brighton was forced to resign by members of his own party who are opposed to the proposed Brighton and Hove Albion stadium, it emerged today.
The association is split down the middle over the issue and it is understood the briefing against Mr Logan began when he appeared in The Argus last month with shadow sports minister Hugh Robertson backing the stadium.
Conservatives have agreed not to speak publicly about the reasons for Mr Logan standing down.
His supporters strongly denied suggestions Mr Logan had been sacked by Conservative Central Office because of a weak election campaign.
One senior party member said: "When David was effectively forced to resign he did so on the basis that there was a localised campaign.
"But there was a major falling out on one policy issue with a small number of people. It was about the Falmer stadium.
"The campaign team meeting was hijacked. There was a group of people who were very firmly against the bid and they called a motion of no confidence.
"They would not tolerate their candidate even having a view on the issue so David's position was impossible and he tendered his resignation."
The Kemp Town seat is among the Conservatives' target seats at the next election, along with Brighton Pavilion and Hove and Portslade.
Labour increased its majority at the last election to 4,922 after first snatching the constituency from the Tories at the 1997 election landslide.
The insider added: "I'm sure there was an element of the fact the selection process was very unpopular with the same group of people even before he arrived."
Mr Logan declined to comment further than his initial statement that there was "no scandal" attached to the resignation.
Brian Dando, the Conservative chairman in Kemp Town, said: "We had our regular campaign meeting when we review all activities of the campaign and we also look at policy issues. We did not get satisfaction from David Logan on some of these matters.
"We held a full meeting of the executive council. When Mr Logan was asked to speak, he read a prepared statement in which he tendered his resignation.
"Falmer was one of the issues we discussed. We have had a policy of being against Falmer as we feel match days will be a big problem in many parts of the constituency."
Albion are waiting for a decision from Deputy Prime Minister John Prescott about plans to build a 23,000 seat stadium on the edge of Falmer.
A public inquiry is expected to draw to a close next month after Mr Prescott ordered further investigation into alternative sites.
Conservative challengers for all three Labour-controlled seats in the city hoped to make political capital from the fact the Labour Government had stalled plans for a community stadium.
Mike Weatherley, the Tory candidate for the neighbouring Brighton Pavilion seat, confirmed the sacking of Mr Logan had not dented his support for the Falmer proposal.
He said: "I fully support Brighton and Hove Albion's bid to relocate to a new Falmer stadium - and even have the T-shirt to prove it."
Des Turner, the Labour MP for Kemp Town, said: "This all looks to be a bit of a shambles and puts any future candidate in a rather invidious position.
"If he fails to support Falmer, he will not be getting any votes from Albion fans but if he does back the proposal, he will lose the support of his own party.
"This also puts the lid on any suggestion Labour is trying to delay the inquiry or we are the ones not supporting Falmer.
"There is no mileage now for Albion supporters voting Tory."
A substitute candidate for Mr Logan will be chosen by the end of January as the expected date of the election of May 5 approaches.
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