Spurs and Leyton Orient have withdrawn their bid for a judicial review into the handing of the Olympic Stadium to West Ham United, the government has said.

The move, on the eve of a planned hearing this morning, follows the collapse of the deal to award the stadium to West Ham after the London 2012 Games.

The Olympic Park Legacy Company said the collapse was due to delays caused by the legal wranglings.

The Department for Culture, Media and Sport (DCMS) spokesman said that they had come to an agreement where all parties will bear their own legal costs.

The OPLC, government and mayor of London currently agree the stadium will remain in public ownership.

West Ham United has said it will bid to be the stadium tenant.

The OPLC has been asked to start a new process to secure tenants for the stadium and any interested bidders will have to submit proposals by January. A fund of �35m has been set aside from public money to convert the stadium.

Leyton Orient Chairman Barry Hearn said: “The whole process has been flawed. The last four or five years has been largely wasted and we have to go back to the beginning. If the OPLC try to fast track the whole process they will be challenged again.”