The opening of the hotly-anticipated Bristol Arena will be delayed by two years after the relationship between the main contractor and the council broke down over cost.

According to a statement made by Bristol City Council, the local authority and Bouygues UK decided to “part ways” as a “price cannot be reached”.

Last April, it was revealed that the Populous-designed venue – which is going to be used for sport and entertainment events – was scheduled to open in 2018 after the council gave the proposal the green light.

However, work is now only expected to begin in spring 2018, with autumn 2020 earmarked as rough date for its opening.

The development is expected to cost £92m (US$111.1m, €104.9m).

Marvin Rees, Mayor of Bristol, said that while he “reluctantly accepted” that an agreement between the parties would not be reached, he was “committed to getting the arena built”.

“It remains closer than it has ever been,” added Rees. “We have the design, the planning permission, the operator and the momentum.

“I firmly believe that we can and will build the arena Bristol deserves but this has to be for the right price. We have made a lot of progress and are now seeking an alternative contractor to build the arena as soon as possible.”