Legacy has today lost its preferred bidder status to buy the Dome opening up the sale to other consortia, after an agreement could not be reached by yesterday's deadline.

Former NMEC chief executive, PY Gerbeau is now clear to make a bid following his call yesterday for the government to reopen bidding and his frustration at the 'mishandling' of the sale by the government. Gerbeau wants to keep the Dome as a visitor attraction and convert it into an entertainment complex staging musical and sporting events led by big names such as Lennox Lewis, Mike Tyson, Michael Jackson and Madonna.

Earlier this week Legacy joined forces with property group Teesland to back its £125m bid to turn the site into a hi-tech business centre. Discussions with Legacy will continue while other consortia begin negotiations. The auction of the Dome's contents is scheduled to begin on 27 February, but could be delayed if an agreement is still not reached by then.