The FTSE 250 property company Capital & Counties could retreat from the most controversial part of a luxury development in west London by handing back two estates to the council.
Capco is in talks to return the Gibbs Green and West Kensington council estates to Hammersmith and Fulham, which has been fighting to block their redevelopment since Labour took control in the 2014 local elections.
The estates form part of a bigger £12bn regeneration scheme designed by Sir Terry Farrell.
