M&S says its plans are being reviewed

According to the city council, Marks & Spencer had agreed terms to occupy the slot in a £500m expansion of Broadmead.

But an M&S spokeswoman said the company was reviewing all its projects after a change in management last year.

A House of Fraser spokesman said: "We have been in conversation about it, but we are happy trading where we are. No decision has yet been made."

'Outstanding opportunity'

The company already has a shop in Broadmead, having bought out Bentalls in 2000.

The support of a major retailer is considered an important part if the development is to proceed.

The partnership behind the development, the Bristol Alliance, said: "The Broadmead expansion presents an outstanding opportunity for an anchor department store.

"We are close to formally announcing our department store partner."

An M&S spokeswoman added: "There is lots of speculation about this.