Sheffield City Council is hoping to maintain business links with a Chinese construction firm despite a £1bn deal being dropped.

The council announced the 60-year agreement with the Sichuan Guodong in 2016.

But its developments at West Bar and a five-star hotel in the city's central library building will not be taken forward and there are no future plans or projects likely to be considered.

The council says Sichuan Guodong has undertaken feasibility studies at its own expense in the last three years, but they have failed to meet viability requirements for investment.

It says it will now work with the company to identify other opportunities.

Sheffield has more than 4,000 students from China at its two universities – the most outside London – and several Chinese communities.

Mazher Iqbal, the council's cabinet member for business and investment, said: 'I would like to thank Sichuan Guodong for its strong enthusiasm and affection for Sheffield, strengthened by their own family ties here.

'I remain hopeful that Sheffield and Guodong can work together in the future.

'There are a large number of private sector schemes in Sheffield that Sichuan Guodong may wish to collaborate on and we will be happy to inform and advise them if any interest arises.'