The FA said on Friday its intention to build a national stadium on the site of London's famous twin towers was on track after satisfying all the criteria laid down by the government.

'The FA have made very good progress in meeting the conditions that I set out before Christmas but it's not yet a done deal,' Culture, Media and Sport Secretary Tessa Jowell told BBC Television.

Late last year, the government - which is putting 20 million pounds into the redevelopment - attached strict conditions to that funding, amid worries about the governance of the project, which has been dogged by controversy and delay for more than three years.

The FA has written to Jowell, informing her that it is in the final phase of the project and is almost ready to start construction of the new national stadium.

Media reports suggested last week that German bank Westdeutsche Landesbank had won the contract to finance the construction of the 90,000-seater development after Barclays Plc pulled out.

The estimated cost of the troubled project, partly funded with money from Britain's National Lottery, has more than trebled to 715 million pounds ($1.05 billion) since the government announced plans to build a new national stadium in 1996.

Media reports said the German bank was proposing a 400 to 500 million pound package.