A deal with developer Westfield to move the 300,000ft2 Olympic press centre, part of the £385m media centre, to the Stratford City development is unlikely to go ahead, according to Olympic sources.

It had been hoped that Westfield and the Olympic Delivery Authority (ODA) would reach an “in principle” agreement this week, sources said.

However, one source said: “It’s looking pretty flaky. This could be all called off before Christmas.”

The ODA has resumed work on plans for a press centre on the original Hackney Wick site.

The source did not say why the deal was unlikely to go ahead. However, Westfield is under pressure owing to tough market conditions and it is unclear if a long-term tenant for the building has been agreed.

David Higgins, chief executive of the ODA, said last week that the original site remained the “current plan” but talks with Westfield were continuing.