Plans to build a permanent stadium for Brighton and Hove Albion descended into chaos today.

The club originally wanted to make its home on a site at Village Way North in Falmer.

The site has been included in the draft Local Plan, Brighton and Hove's blueprint for the city's future.

But the football club failed to agree terms with Brighton University, which owns part of the proposed site, and decided it would prefer another location 200 metres further south at Village Way South.

Council leader Ken Bodfish said yesterday this undermined the case for Falmer and there should be a fresh look at other sites, including Waterhall Valley north of Patcham.

The ruling Labour group on the council, in a mild rebuke to him, passed a resolution last night reaffirming its commitment to Village Way North.

But it said if the site proved impossible, the council should look at other sites including Village Way South. At this stage, however, it will not change the Local Plan.

At the same time, Sir David Watson, Brighton University director, sent a long letter to all councillors explaining its position.

Sir David said the university could not support the Village Way South site and that Sussex University would also be opposed to it.

Albion chairman Dick Knight blasted Coun Bodfish's remarks on Falmer, saying they were ill-timed, ill-conceived and ill-informed.

He said of his statement: "It ignores the findings of the report into all potential sites, validated by the council's own planners, which stated that Falmer is the best available, the only viable location for a stadium in the city.

"It ignores the clear mandate given in the council's own referendum and the will of the people when in 1999 almost 40,000 local residents voted in favour of a community stadium at Falmer.

"It ignores the fact that Waterhall is north of the Brighton bypass and therefore against council policy for development, also that it would be almost impossible to build a station there for rail safety reasons."

Sir David stressed the club was committed to Falmer and added it was ready to submit a planning application for Village Way South once the Local Plan had been debated by councillors on July 26.

The impasse now means it could be years before a permanent home is found for the club, leaving the Seagulls stuck at Withdean, their temporary ground.

But there was a small ray of light.

Sir David said the university was prepared to re-enter discussions at any time on Village Way North.

Both he and Lord Bassam of Brighton said they would be personally prepared to bring the parties together.

Coun Bodfish said there had been a dispute between the university and the club about finance for the Village Way North site.

He added: "Our line is that we would prefer Village Way North and would be happy to help get the parties together to discuss it.

"But if an application is made for Village Way South by the club, this will be given full consideration by the council. It may also be necessary to look at other sites."

Coun Bodfish denied suggestions he had been rebuffed by the group and said it had made an entirely sensible decision.

He said the position was that alternatives, including Village Way South and Waterhall, would be considered if Village Way North did not prove possible.

Coun Bodfish said: "Apart from abusive calls I have received from some Albion fans, I am getting a lot of support from people who say that maybe we should look at other sites including Waterhall."

Lord Bassam, who first proposed the idea of a community stadium at Falmer, said the Labour group had reached a decision full of good sense.

Moulsecoomb ward councillor Francis Tonks said the council leader's remarks about Falmer and Waterhall had been ill-considered and issued without consultation with many people.

He added: "Falmer is my preferred site. I like the idea of a community stadium and the club says it will employ local people."

Coun Simon Charleton, a Labour member of the council task group considering the Albion, said: "I and a number of other people am in favour of Village Way South as a logical next step.

"Village Way North is our preferred site but progress may not be possible on that. Waterhall is a non-starter and Falmer is the only game in town."

All three suggested sites are inside the Sussex Downs area of outstanding natural beauty, which conservationists want included inside the new South Downs national park.

The Society of Sussex Downsmen is strongly opposed to either of the Falmer sites and is likely to reject Waterhall too.

Chairman Richard Reed said: "I am pretty sure we would object to Waterhall because it is north of the A27 and further into the downs."

Chris Todd, of the pro-national park Campaign Group, said: "This is not about providing a home for the Albion, This is about the complete destruction of Waterhall for commercial and industrial use."