Liverpool City Council leader Warren Bradley, who has always favoured a joint stadium at Stanley Park, said: “I’m saddened by it in some ways. The city council objection wasn’t about Everton, it was about the retail, which was too large.

“Until I read the inspector’s report, I can’t go into more detail.

“But if Everton now wants to sit with the city council, the door is always open.”

Frank McKenna, chairman of Downtown Liverpool in Business, last night explicitly called for Everton to think about sharing a new ground with Liverpool FC. Dave Kelly, of key opponents Keep Everton In Our City, said he was reluctant to believe the news without clapping eyes on the report itself.

He said: “We feel a sense of anticipation of the official result.

“We’ve always said there’s only one decision that the Secretary of State can make, and we fully expect to be fully vindicated when we read what he has to say.”

Meanwhile, in Kirkby campaigners spoke of their relief that “planning rules had been followed”.

Tony Barton, who set up the single issue political group 1st4Kirkby to fight Destination Kirkby, said: “It’s victory for common sense. But this isn’t time for triumphalism, it’s a time to begin the process of finding out why this ever got as far as it has.

“Everyone said it would get called in and rejected, and now it has, at a cost of millions to Knowsley people.”

John Fleming, who spearheaded Kirkby Residents Action Group, along with Rev Tim Stratford, said: “This proposal would have badly damaged Kirkby and I’m relieved it has been rejected.

“We feel we were excluded from a process that was railroaded through the planning committee. But the issues raised in the public inquiry have been heard and that’s a victory for democracy.”

But not all residents’ groups were celebrating the result.

David Dodd, who set up Kirkby Residents In Support of Progress and supported the bid at public inquiry, said: “The Government has given the North-West a kick in the teeth. This would have created thousands of jobs, which have now effectively been lost. It’s a disaster.”