Mr Woolas told the Daily Post: "This issue is far from over and the needs of Everton Football Club are still real.

"The Government is committed to the regeneration of both Kirkby and Skelmersdale and we will be working behind the scenes with all parties to see if we can take forward a Plan B.

"We are not going to leave this to the free market. I will be meeting with local civic leaders to use government power to intervene in this."

Mr Woolas will report back to the PM on progress. A key issue is whether the stadium, Tesco and other shops can still be part of a single planning application – with Mr Woolas convinced they can be.

George Howarth, the Knowsley North and Sefton East MP, who supported the project, said it was "too early to say" whether the rescue plan could succeed.

But he added: "There are high-level talks and it's very encouraging that Phil Woolas, with the blessing of the Prime Minister, is engaging with Knowsley Council, Tesco and others to see what can be done."

It is 12 days since Communities secretary John Denham decided the £400m Destination Kirkby project would breach shopping policies.

However, ministers sensed a chink of light with the inspector's conclusion that it was the sheer number of accompanying shops – not the Tesco store – that broke the guidelines.

Although Everton chairman Bill Kenwright said the "book is closed" on Kirkby, the club is believed to retain an interest in reviving the project, provided others do the heavy lifting.