Shropshire Council has insisted that a new £7.6m leisure centre in Oswestry will be completed as planned, despite concerns that the company appointed to build the facility had gone into administration.

Frank Galliers, the Shrewsbury-based construction company, started work on the Oswald Park Active Lifestyle Centre in March 2009, which will replace the town's existing facilities at College Road. However, the council has confirmed that it has been told by management staff at the Oswald Park that the contractor has encountered financial difficulties, despite having not received any official word from the company itself.

Laura Rowley, the council's director of resources, said: "Work is currently halted and the site has been made secure while the council reviews the situation and its options. "The council is committed to completing the two projects being undertaken by the company - the new leisure centre in Oswestry and the refurbishment of Market Drayton market hall - and are taking the necessary steps to ensure this happens."

The Oswald Park Active Lifestyle Centre, which has been designed by Michael Hyde and Associates, is set to include a 25m swimming pool, a learner pool, a multi-use sports hall and a function hall. A fitness suite, refreshment facilities and a crèche are also among the proposed facilities, while new football pitches, a multi-use games area and a BMX park are set to form future developments at the centre.