Westfield is “determined” to be present in Croydon despite an announcement they had missed out on their bid to redevelop the Whitgift Centre.

Hammerson was announced as the development partner for the Whitgift Centre on Monday amid anger from its freeholder, the Whitgift Foundation, which called the decision “inexplicable”.

Now, Australian giant Westfield, who had been in talks with the Whitgift Foundation, has vowed to bring their project to fruition.

With battle lines drawn, it is feared the centre may now suffer the same fate as the ill-fated Croydon Arena, which was never built following a decade of dispute between rival developers.

Jones Lang LaSalle had been brought in to draw up a shortlist of bidders and select a preferred partner by the centre’s other leaseholders, Royal London Asset Management (RLAM) and IBRC Assurance Company (IBRCAC).

A joint statement from RLAM and IBRCAC said: "The quality of submissions from all parties was very high, although in Hammerson we recognised a partner who could demonstrate a long-term commitment to reasserting Croydon as a centre of retail excellence through a combination of redevelopment and organic growth."

But the Whitgift Foundation has revealed it was excluded from the bidding process and is far from happy with the decision.

A spokesman said: “The selection of Hammerson as the preferred development partner of the Whitgift shopping centre by the two leaseholders is inexplicable and will not deliver the much needed, widespread regeneration of Croydon.

“The Whitgift Foundation, which was established more than 400 years ago and is totally committed to the well-being of Croydon, was excluded from the process despite being the freeholder of both the shopping centre and adjoining properties.

“The Whitgift Foundation has a binding agreement with Westfield, who are prepared to commit a highly experienced team to focus on the regeneration of Croydon.”

And Michael Gutman, managing director for Westfield Europe and new markets, added: "Westfield remains determined to work with the owners and local authorities to help create a town centre that the people of Croydon and surrounds can be truly proud of.

"We have the skills, the funding, the resources and the track record to make this project a success.

"We recognise Croydon as an ideal candidate for regeneration and, through our binding agreement with the Whitgift Foundation, we are committed to taking this important project forward."

Reacting to the decision, Max Menon, chairman of Croydon BID said: “The fear is this will become another Croydon Arena and just become more and more protracted, where nothing gets developed and nothing gets done. It is all a bit unseemly really.

“These are my personal views but I think I probably speak for most of our members when I say we want to see action, whoever is chosen to redevelop the centre.”

A council spokesman said: “The fact that two major shopping centre developers have demonstrated such a strong interest in Croydon is evidence of our enormous potential.

“We hope that all parties will work to this commercial objective and in the best interests of Croydon and its residents.”