FA decides to relocate England matches despite Multiplex promising completion by June.

Wembley stadium will not open until 2007, the Football Association has announced today.

The announcement comes as the project is beset by further problems, including drainage issues and a dispute involving steel contractor Hollandia.

Wembley chief executive Michael Cunnah said: "We share everyone's disappointment at Multiplex's announcement today of a further delay in the completion of the stadium.

"Their revised construction schedule leaves us with no other choice but to make this decision. However, this does not detract from our focus and determination to deliver a world-class stadium.

The move follows an announcement by main contractor Multiplex to the Australian stock exchange last night, when the contractor said it was targeting "practical completion" by the end of June, but claimed it was entitled to have until September to complete the project.

In its statement, Multiplex said: "Substantial completion of the contractor's works is now anticipated by the end of June 2006…[this] will have certain works and certain activities such as commissioning and cleaning still to be completed after this date."

Multiplex announced that it believed any delays were out of the company's control, and the company did not anticipate any "further adjustments to the project's financial position". This raises doubts over the £40m penalty fees that Multiplex could be charged by Wembley National Stadium Ltd, which Multiplex blames for imposing design changes on the project.

The statement said: "Multiplex is entitled to substantial and legitimate extensions of time under the time of its construction contract. It is Multiplex's belief that it has until at least September to complete."

The FA has now confirmed the relocation of matches including the FA Community Shield and three other football matches, including England's planned first home international. It is understood that upcoming concerts by Bon Jovi, Take That and Robbie Williams are also being moved to alternative venues.

Wembley chief executive Michael Cunnah said: "We share everyone's disappointment at Multiplex's announcement today of a further delay in the completion of the stadium.

"Their revised construction schedule leaves us with no other choice but to make this decision. However, this does not detract from our focus and determination to deliver a world-class stadium."

Multiplex said that 25 locations in the Wembley drainage system were currently undergoing repairs, but claimed that any delays caused by the works were accounted for in the forecast programme.

The company said that an investigation was still continuing into the incident involving the collapse of a 50-tonne steel roof rafter, which caused the site to be evacuated for a day last week. The company said that the rafter was being reinstated to its final position, where it will be "assessed along with the surrounding elements for any further rectification work."