“The solution is not about finding land – this is a solution about finding money; it’s about affordability,” he said.

“That was the big attraction to Kirkby, that it was affordable.

“Then it’s about reviewing alternatives and sitting down with partners, all the stakeholders in this region and anybody who can help Everton deliver what it needs, which is a world-class stadium that’s going to secure our future for years to come.”

Liverpool Council leader Warren Bradley said he wanted to work with Everton on whatever plans they came up with.

“I think it is up to the club to come to us, we will work with Everton to help them achieve what they want,” he said. “I was the one who first floated it [shared stadium]. But I think we have come to a crossroads. I am not in a position to start dictating to two commercial businesses what to do.

“Robert Elstone has said that he would not rule anything in or out. But I am not going to dictate.

“I would say to Everton as soon as we can let’s talk in a constructive manner about what Everton want to achieve with the help of the council to help them secure funding.

“My favoured option has always been the redevelopment of Goodison.”

He said the possible need to relocate the nearby Gwladys Street Primary school, homes in Muriel Street and Diana Street, and Walton Motors to allow for the redevelopment of Goodison was “not a massive hurdle”.

“I really do believe that we can work with Robert Elstone to bring forward something that can work in the future.”

Opposition Labour leader Joe Anderson said the setback for Everton was an opportunity for both clubs to go back to the drawing board.

“As far as I am concerned this is now a real opportunity for the city council to talk to both Liverpool FC and Everton FC. We need to get some meaningful, open, and honest dialogue with both clubs to understand their financial situations.

“The city deserves and needs to know what is the future of LFC in relation to its commitment to its Stanley Park project. We have waited seven years and can’t just sit around.

“And we have got to talk to Everton about what they can offer and what they can do.

““If it means we have to look at the two grounds developing and part of Stanley Park being used as an enabling development, then we should look at it.”