Hopes of saving the derelict Virgin Active site have been dashed after an idea to convert it to a new gym were rebuffed.

An entrepreneur, who did not wish to be named, initially approached Merton Council in November last year with a plan to take over the site in Battle Close, Wimbledon, and open an easyGym.

Months later however, that idea was rejected and the entrepreneur was told the site "would be used for housing."

This idea was all but confirmed by Deputy Leader of Merton Council and cabinet member for finance, Mark Allison, who said: "With a housing crisis in the capital, our long term ambition will be for this site to be developed as new homes for local residents."

But despite these plans, the entrepreneur came back once again with a new plan to offer a short-term lease, something he said would save the council "hundreds of thousands of pounds."

Once again this offer was declined.

"Leaving the building empty to rack up huge costs is just simply irresponsible and although a gym makes more sense because no planning consent will be needed, there are plenty of other community groups that could make good use of the facility in the interim," he said.

"There is a lot of frustration within the community and rightly so when you consider how much is being spent each month.

"I will get behind any decision that the council make on the long-term plan for the site but in the interim, I have the experience and the passion to not only solve a problem for the council but also bring something great to the community."

The building has been empty since December last year and in March 2018, more than 26 squatters broke into the site through a gap in the bars and allegedly made their way to the sauna and steam facilities.

Mr Allison said the proposal just wasn't up to the quality the council was looking for.

"As a business-like council, we have to be careful about subsidising private businesses, and our diligence has concluded that the offers we have received so far do not stack up and would end up costing council taxpayers more than other uses," he said.

"Of course those businesses will be disappointed, but as no convincing, financially viable alternative solution has come to light, unfortunately demolition would be the next logical step so that vital tax payers money isn’t being spent on business rates and costs to secure the site."