Plans for the site, close to Shepherds Bush in West London, comprise 1 million sf of shopping retail use, including two department stores, and more than 200,000 sf of leisure space.

Nigel Hugill, the managing director of Chelsfield said: 'CGI's proposal was one of a number, but any definitive conclusion is some way off.'

But the City is questioning how far CGI will get with its proposal to buy the entire 40-acre site, which has lain derelict since the 1970s.

CGI wants to retain Chelsfield solely as a development partner and inject an estimated £400 million ($655 million) of equity to finance the development. Chelsfield, however, is looking for a 50:50 partnership with the fund contributing up to £250 million ($409.7 million). Such an option is expected to attract attention from a range of property players including British Land and Land Securities, Legal & General and Hammerson.

In the meantime, Chelsfield is also considering a potential £1 billion ($1.6 billion) management buyout led by chairman Elliott Bernerd with funding from the French-Israeli diamond magnate and shareholder Beny Steinmetz.

The outcome of this buyout bid could be crucial to determining which financing option Chelsfield adopts on White City. If the company goes private it will be able to increase its gearing and maintain a hold on the site. But if it remains public then Chelsfield could lose ownership of the biggest regeneration project in London.