WINCHESTER civic chiefs are today poised to hand an ultimatum to the developer behind Silver Hill - build it now or we will walk.

TH Real Estate (THRE) has asked for more time to deliver the controversial regeneration after breaking promises to start by the New Year.

But patience is running out at Winchester City Council, where senior councillors are for the first time seriously considering ditching the firm and starting again.

"I want to tell them that it's this scheme, it's now, or really we have to protect the interests of Winchester," said Cllr Stephen Godfrey, leader of the council.

In a letter to Cllr Godfrey published on Monday, THRE boss Mike Sales claimed the £150 million plans must be changed again to meet building standards.

He proposed scrapping the bus station for the second time, providing "an amount of on site affordable housing" and reducing parking in the block replacing Friarsgate car park.

Mr Sales also raised the prospect of legal action against the council if it terminates their partnership, something civic officers believe is "unlikely", according to a new report.

Cabinet is due to agree a way forward at a meeting today and could decide to scrap the contract, putting pressure on THRE to deliver the current proposals.

Cllr Godfrey said on Tuesday: "What they're asking will take another three to four years to get back to where we are now. I would like to move forward with the current scheme if at all possible, and if not then we have got to find a quicker way, a better way to develop the area as soon as possible."

THRE sparked outrage in 2014 by dropping a bus station and all 100 discount flats from the project.

The move was overturned by the High Court last year after a legal challenge by rebel councillor Kim Gottlieb, but THRE will appeal the decision in May.

Mr Sales has asked the council to extend their contract until nine months after the results of the case, giving them time to bring forward a scheme of "acceptable quality".

But council officers believe this would delay the start of work until as late as 2020. In a report published for yesterday's meeting, corporate director Steve Tilbury and head of legal Howard Bone said scrapping the contract might be the "better long-term solution".

THRE was unable to provide comment today.

Cllr Gottlieb, leader of the Winchester Deserves Better campaign, has long lobbied the council to terminate the contract.

He said: "The council is moving in the right direction under its own steam, even if in a slow, begrudging way.

"They've had the best part of five years to sort this out. There are intrinsic problems with the project itself, which is what's really held it up."

"Frankly, if they were to respond to [Cllr Godfrey's] letter and say 'alright, we'll get on with it', then I'm not sure how much credence that has.

"For them to change position again would seem implausible."

A recommendation from today's cabinet will be referred to a special council summit on January 28 before a final decision is taken by cabinet on February 10.