Real Madrid’s €420m plans to redevelop the Bernabéu have been dealt a major blow after the city’s supreme court of justice ruled that work on the project should be halted with immediate effect.

“Madrid’s Supreme Court of Justice has annulled the agreement of November 15, 2012 issued by the Governing Council of the Municipal Community of Madrid, which approved the modification of land-use plan related to the Santiago Bernabéu,” read a Real Madrid statement.

“Following this ruling, Real Madrid will work with the City Council and the Community of Madrid in resolving those aspects that are necessary to make the redevelopment of the Santiago Bernabéu stadium viable.”

The redevelopment work included a shopping centre being incorporated into the complex as well as a hotel and a retractable roof on the stadium. Corporate hospitality zones would be much expanded compared to current seating layout.

Last week the Spanish sports newspaper AS reported that the Bernabéu would be renamed the Abu Dhabi Bernabéu. Real Madrid’s president, Florentino Pérez, was caught on camera admitting to a member of the regional government that the stadium will be called whatever the Abu Dhabi investment group Ipic wants it to be called.