THE controversial firm behind a £150million city centre revamp could be ditched in just over a week after civic chiefs rejected an extension to their development deal.

Winchester City Council snubbed an offer from developer TIAA Henderson Real Estate amid questions over their financial figures and threats of a second legal challenge from rebel councillor Kim Gottlieb, who is battling the contentious Silver Hill project.

A pair of meetings on Thursday heard how Henderson has submitted files it hopes will set in motion a version of the scheme approved in 2009: a £150 million regeneration including shops, homes, car parking, a bus station and 100 affordable flats.

A Development Agreement tying Henderson to the council is set to expire on June 1, allowing both parties to walk away.

Cabinet snubbed Henderson’s offer to extend this to October 31 as Cllr Gottlieb threatened to repeat a successful legal challenge he brought against the council in January.

But there is no indication yet that the council will abandon the firm.

It came amid indications of a change of heart from bus operator Stagecoach over its willingness to run a new Silver Hill bus station.

Kevin Warren, the council’s head of estates, said he had seen a draft letter from the firm which said it was “happy” to do so.

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During more than six hours of Guildhall debate, officers faced questions over Henderson’s claim that the 2009 plans, which it wanted to replace on the basis that it wouldn’t make enough profit, were now viable.

Thursday’s decision means the scheme could go ahead well before September, when Claer Lloyd-Jones is expected to report on the council’s unlawful handling of the project.

Meanwhile, Henderson is set to fight the judicial review decision which quashed their preferred 2014 scheme at a hearing in November.

Howard Bone, the council’s legal chief, said on Thursday that Henderson could try again to change the scheme should it win an appeal.

Cllr Gottlieb welcomed the decision, saying: “More and more councillors are realising that the process is flawed, that the scheme is flawed and we have a wonderful opportunity to start afresh in the interests of the city.”