A Valuable land package that includes a former York pub has been thrown back on the property market - after developers missed the deadline to secure its purchase.

Dransfield Properties had planned to transform the Frog Hall pub, in Layerthorpe, and part of the neighbouring former gasworks site, into a McDonalds drive-through burger bar and video store.

But after two years of complex negotiations over the polluted land, which needs extensive work to remedy contamination before it can be used, no agreement has been reached.

A spokesman for landowner Secondsite Property told the Evening Press today that they would be marketing the city centre plot again, and were open to fresh offers.

He said: "There was a long history of negotiations, but at the end of the day it proved impossible to agree terms, and for that reason we are reviewing our approach to the site."

But a Dransfield spokesman said the firm was working hard to come back with an attractive offer within six weeks, which could seal the original deal.

He said Dransfield had already invested in the site with investigations into the soil pollution and had secured planning permission for the retail development.

The Frog Hall pub, owned by Enterprise Inns, closed almost 18 months ago despite a campaign staged by customers and local residents. Both property companies said that, despite the changing situation, there was practically no chance of the pub being reopened.

The Secondsite spokesman said the company was committed to restoring the brownfield site at Layerthorpe, but warned this could take many more months.

He added: "You can rest assured that Secondsite will respond to taking forward the Layerthorpe site but people must understand that deals such as this take time within the property sector."

Development control officer Mick Britton, of City of York Council, said a number of surveys had taken place and decontamination work would be part of any planning application for the land.

Updated: 09:33 Thursday, April 17, 2003