CHELSEA's hopes of building a new stadium at Battersea Power Station were dashed after they lost out in the bidding for the site.

The Blues had earmarked the 15-hectare plot on the south bank of the Thames as a possible site for a new ground after growing frustrated in their bid to redevelop Stamford Bridge.

Chelsea were among 15 bidders for the area, but were beaten by Malaysian property companies SP Setia and Sime Darby, whose £400million joint bid earned them the right to develop the site.

The west Londoners had planned to build a new 60,000-seater stadium in Battersea, but they will now have to explore other avenues after this latest blow.

Chelsea have also sounded out sites at Earls Court and Shepherd's Bush for a new ground, while they could still stay at Stamford Bridge if they can reach agreement over plans to substantially increase capacity.

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