The decision means Sheffield City Council is now looking for a new development partner for the Sevenstone scheme.

The planned shopping centre has been subject to a series of delays and has been on hold since 2008 when Sir Robert McAlpine was acting as construction adviser.

Hammerson said: “Going forward, we must ensure that our capital and human resources are appropriately focused on completion of schemes which offer the most attractive returns over the medium to long term.

“The main focus of Hammerson’s strategic UK development projects will be on its major retail schemes in Leeds and London, including Croydon and Brent Cross, which in total will deliver circa 327,000m² of new retail space over the coming years.

“This is in addition to the refurbishment programme of existing centres and retail park extensions.

“Consequently, Hammerson has reached mutual agreement with Sheffield City Council not to progress Sevenstone, the proposed new retail quarter for Sheffield city centre.”