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Luton Airport has announced the withdrawal of a plan drafted for its redevelopment.

The redevelopment plan had focussed on the replacement of a 950-metre long runway and the provision of terminal facilities.

That plan has now been shelved, meaning the airport will instead concentrate on making the most of its existing site.

Demetrio Ullastres, chairman of the airport's parent company TBI, said: "We have decided that our proposals should focus on making the most of the existing airport site.

As a result we have withdrawn the current draft master plan. This described a full-length replacement runway 950 metres to the south of the existing runway with adjacent terminal facilities. We will not be pursuing this option further."

In a statement on its draft master plan issued on October 25th 2005, Luton Airport outlined the two phases of the project. The first phase, which was scheduled to be completed by the end of 2007, aimed to complete construction of additional aircraft stands, a terminal extension and associated piers and a multi-storey and surface car park .

The second phase of the plan included the building of a replacement runway, a new South terminal, additional aircraft stands, a new fire station and a control tower.

The airport had hoped to open the replacement runaway and new terminal by the 2012 Olympics in London but today's announcement casts doubt over the likelihood of achieving this aim.

A list of proposals regarding the airport's development over the next eight years will be published later this year.