Plans to build a 39,000-capacity sports stadium on the site of the notorious Maze prison near Lisburn, Northern Ireland, have been dumped by the Northern Ireland Assembly.

In a statement, the Northern Ireland first minister Peter Robinson said that although the redevelopment options for the site will be studied further, all plans to build a multi-sport stadium "will not be taken forward".

The stadium, which was designed by HOK Sport – which recently rebranded as Populous – was to host rugby, football and Gaelic games.

The stadium was to be accompanied by a mixed-use "village development", which would have included a hotel, bars and restaurants.

A selection of sporting bodies and sports venues in Northern Ireland are now set to get a cut of a £70m windfall originally allocated for the proposed Maze site.

It is understood that Sports minister Gregory Campbell is already considering ways to reallocate the funds, provided by the Department of Finance, to sporting bodies on the basis of need and a number of sporting venues which need upgrades to meet safety standards.