Selhurst Park is set to become a battleground as potential developers hover around the financially stricken stadium hoping for a bargain.

Croydon Council chief executive Jon Rouse cut short his annual leave over Easter for crunch talks with administrator PricewaterhouseCoopers (PWC), warning the council would “fight tooth and claw” to ensure the site remained a football stadium.

But the administrator confirmed it was still in talks with parties who wanted to see the site developed in other ways.

PWC partner Barry Gilbert said: “The situation concerning Selhurst Park is extremely complex involving a number of different parties.

“We are working as quickly as possible to make the sale in the interests of all parties but we’re particularly sensitive to Crystal Palace Football Club and the surrounding community.

“While no formal offers have been received we are continuing to explore interest with all parties. Most interested parties have expressed a desire to see Selhurst Park remain a stadium.”

Croydon Council has reiterated its policy of refusing any development at Selhurst Park that would put its future as a stadium in jeopardy, unless an alternative can be built “within or close to the borough”.

Chief creditor Lloyds Banking Group, which is owed £12m by current Selhurst Park owner Paul Kemsley, has the option of selling the ground for a cut-price £3m to a consortium of Crystal Palace fans – but could make double that amount from a private developer.

Senior figures at Lloyds are believed to have become involved to prevent a possible public relations disaster caused by the bank handling the sale badly.

Lloyds must weigh-up risking the football club’s future by selling to a developer, against cutting the profits of its shareholders if it accepts a lower bid from fan consortium CPFC 2010.

There are fears Selhurst could be filled with flats if developers are willing to challenge the strict planning policy Croydon Council has placed on the site.

Sainsbury’s has denied reports it hoped to turn Selhurst Park into a giant supermarket, saying it only met PWC to discuss plans for the stadium because it has a store next door.

A Croydon Council spokesman said: “The administrators made clear in that meeting they were only considering bids that would see the continued stadium use, and the council expects Lloyds to honour that position.”

But according to a report in the Daily Telegraph, the developers involved in the race for the stadium site are thought to be financially strong enough to fund a bid, planning applications and appeal if necessary.

Mr Gilbert said: “Due to the complexity of this case and the Football League framework any official sale will not take place until after the end of the season.

“Realistically, it is likely to be some weeks before the process is concluded.”

A spokesman for Lloyds said: “Lloyds Banking Group appreciates fully the importance of the club to its loyal fans and the community and remains committed to seeking a sensible, commercial solution that enables Crystal Palace to have a sound future.”