Shrewsbury Borough Council has finally agreed to settle up the £8.5m construction bill for the city’s Sports Village.

The original £6.9m budget agreed with leisure developer Bluestone — formerly Morgan Ashurst — rose by £1.6m more than determined at the outset of the project.

Council leader Peter Nutting said: “I am pleased to report that following negotiations between the borough council and Morgan Ashurst, agreement was reached on 25 March for a full and final settlement of the Sports Village account.

“The sum agreed is £8.5m and this is within the budget agreed by the full council at their meeting on the 30 June 2008.

“Lawyers have been instructed to draw up the necessary paperwork by 27 March and it is anticipated that payment will be made on 29 March.

“This will draw to a conclusion the construction phase of the Sports Village.”

The payment will put an end to three years of disputes between the council and the developer regarding the final budget and alleged faulty workmanship.