The local developer behind the long-awaited scheme, Iliad, admitted that the protracted conflict over Compulsory Purchase Orders (CPO) with shop owners on the site had forced the budget for the key regeneration scheme to balloon over £50 million.
However, Iliad has confirmed it will still be proceeding with a smaller project on the site and hopes to submit a revised application within the next two months.
The Concourse Tower is expected to be pulled down as previously planned.
Spokeswoman for the developer Julie Risely said: 'The upscale in cost just couldn't be funded - it was just not financially viable.
'We are slightly disappointed but we will still be getting rid of the ugly stuff and creating a great piece of public realm.
'There were a number of problems with the scheme which need rethinking.
'No budget has been set for the new scheme,' she concluded.