Selhurst Park could become a giant supermarket if developers are willing to challenge the strict planning policy Croydon Council has placed on the site.

Lloyds Banking Group, which is owed £12m by current Selhurst Park owner Paul Kemsley, has the option of selling the ground for a cut-price £3m to a consortium of Crystal Palace fans, or make double the cash through a private developer.

Top figures at Lloyds are believed to have become involved to prevent the bank entering a possible public relations disaster by handling the sale badly.

But the bank has to weigh up risking the future of the football club by selling to a developer, against costing its shareholders money if it accepts fan consortium CPFC 2010’s bid.

Sainsbury’s is believed to be among the four parties interested in the stadium despite already running a store next to the ground, as it is thought to be seeking a 70,000 sq ft outlet in the area.

Croydon Council has reiterated its policy of refusing any development at Selhurst Park which would put its future as a stadium in jeopardy, unless an alternative can be built “within or close to the borough”.

But according to a report in the Daily Telegraph, the developers involved in the race for the stadium site are thought to be financially strong enough to fund a bid, planning applications and appeal if necessary.

The council created the planning policy to safeguard Crystal Palace’s presence within Croydon because of the economic, social and cultural benefits officers believe it brings to the borough.

Its policy dictates any new owner providing another ground would have to retain a space on the Selhurst Park site equivalent to the pitch as local open land.