The redevelopment of a derelict shopping precinct branded Britain's shabbiest street could be delayed by a couple who are refusing to budge from their chemist's store.

Keith and Kathryn Walker, of Teville Gate Pharmacy, Worthing, have vowed developers trying to build a new multi-screen cinema and swimming pool on the site will have to knock down the precinct around them.

Mrs Walker confirmed they had been offered £100,000 in "relocation costs" to fit out a new shop in the proposed development but they understood this deal was no longer on the table.

They had also been offered an empty unit opposite Teville Gate during the construction period but the Walkers branded the site a "dead zone" as far as trade was concerned.

Mrs Walker, who opened the pharmacy in 1980, said that despite the dereliction around them, takings were going up.

She said the shop was worth more than £100,000, adding: "Across the road is no substitute for this position. It is up to them. If they wish to negotiate with us, we are amenable."

Mrs Walker said there were still ten years on the lease.

She warned that if Worthing Borough Council served a compulsory purchase order on them they would appeal, sparking a public inquiry which could take at least a year.

Councillor Paul High, executive member for leisure on the council, is spearheading the redevelopment project.

He hopes the bulldozers will be moving in early next year and believes demolition could still take place, leaving the chemist's standing alone on a flattened site.

He said: "It would be disappointing if one business, which has been offered reasonable terms to quit, holds it all up."

Council leader Keith Mercer said: "The council has now given permission for demolition to take place, probably after Christmas. I am optimistic."

Teville Gate, which opened 30 years ago, has been a focal point for vandals and muggers for more than a decade.

Apart from the pharmacy, the only shop trading in the demolition zone is the Comet electrical store, which is on a short-term lease.

Nobody from Comet was available to comment.

The council still owns the multi-storey car park, which would also be pulled down.

Earlier this year, Argus readers voted Teville Gate the second worst eyesore in Sussex, while Radio Five Live listeners dubbed it Britain's shabbiest street.

Teville Gate is owned by Hanson Trust, which declined to comment.