A MAJOR new sports stadium for York City and York City Knights could be built on the doomed Terry's chocolate factory site, council leaders have revealed.

City of York Council officers will investigate the suitability of using part of the land, off Bishopthorpe Road, as a joint stadium for the city's leading sports cubs.

The council's executive approved the evaluation, along with other proposals designed to breathe new life into the area, following the announcement by parent company Kraft that it is to close next year.

Several uses for parts of the site will be looked into, including a Yorkshire Regional Assembly, business headquarters and a boutique-style hotel to link up with the nearby racecourse.

Council leader Steve Galloway said any substantial brownfield site which became available in the city, like the Terry's factory, would be evaluated for its suitability as a sports stadium.

"It's nothing more and nothing less than that," he told the Evening Press.

"We will look at what the advantages and disadvantages might be. It's one of a range of options the owners of the site could look at."

Efforts to maintain and celebrate Terry's long heritage and links with York are also planned, although it is not yet known if a heritage attraction - such as a chocolate museum or centre - could be created.

"It (the closure of Terry's) was a huge disappointment but a very, very major opportunity for the city," Coun Galloway said.

"We want something that will sustain the economy of the city well into this century and beyond.

"We also want to retain the Terry's name in the city."

Dave Merrett, leader of the shadow Labour executive, said that the area on the east side of Bishopthorpe Road, which was currently Terry's car park, was sensitive in Green Belt terms. He said that "built redevelopment" was unlikely to be appropriate, except possibly for very small-scale developments on the road side of the site, and not near to the river.

Updated: 10:13 Wednesday, July 21, 2004