Since November 2004, the council has been in negotiations with a consortium, Alpha Schools (West Lothian) Ltd, over the refurbishment of five secondary schools.

However, the authority said this week that it had not been able to negotiate appropriate terms and that the current bid no longer represented best value.

Graeme Morrice, council leader, said it was now developing plans for a completely new PPP and investment programme, which could lead to the development of two new schools - Armadale and Deans in Livingston. But the refurbishment of The James Young High, Inveralmond Community High, and St Kentigern’s Academy will continue as a separate council project.