The deal dashes Chelsea owner Roman Abramovich’s hopes of converting the site into a new 60,000 seater stadium for his club.

SP Setia and Sime Darby Property said they will preserve the historic chimney stacks at the site.

A statement by the consortium said: “S P Setia’s and Sime Darby Property’s plans involve the development of a sustainable multi-use real estate regeneration project that will provide economic impetus for the creation of a new vibrant centre for south-west central London.”

The site was placed in administration last year following financial problems at the original Irish developer.

Administrator Ernst & Young said: “Following an extensive global marketing campaign, undertaken by Ernst & Young Real Estate Corporate Finance and Knight Frank LLP, the joint administrators are pleased to announce that on Wednesday 6 June 2012 they entered into an exclusivity agreement with SP Setia and Sime Darby and are working towards a timely exchange and completion of the site and associated land.”

A Chelsea statement said: “We are disappointed not to be selected as the preferred bidder for Battersea Power Station, as we believe we can create an iconic and architecturally significant stadium on the site in a scheme which is commercially viable and of great benefit to the Wandsworth community and London generally.

“We have been clear throughout this process that Battersea is one of a limited number of options the club is considering.”

Wandsworth Council leader Ravi Govindia said:  “There is still some way to go but this is potentially very good news. The power station is one of the biggest development opportunities in Nine Elms and key to extending the Northern Line into Battersea.

“We’re making tremendous progress towards transforming this old industrial stretch of the South Bank which will provide up to 25,000 new jobs for London.

“It’s important that this site and its iconic building are not left behind and that a developer is brought in who understands our vision for the new Nine Elms.”