Serie A giant AC Milan has confirmed it has abandoned plans to build a new stadium in the north of Milan.

The seven-time European champion had already been given the green light by city administrators to develop a new €330m (US$363m, £236m) venue in the Portello region of Milan.

Concerns over the condition of the land needed for the development, however, resulted in the club withdrawing its plans.

It is believed that restoration and cleanup of the site – located at Fieramilanocity, Milan’s old fairgrounds which are no longer used – would cost up to €35m.

In a statement, AC Milan president Silvio Berlusconi said the club would stay at its current home, San Siro, for the foreseeable future.

Initial designs for the new Portello stadium were produced by sports architects Arup.

Described as “the most innovative in the world”, the new stadium was to take its inspiration from English stadiums, creating a multi-use venue operational on non-matchdays and easily reached by public transport.

As well as a new stadium, plans included a hotel, a sports college, restaurants, green areas and public art spaces.