Bradford Council could lose cash from the sale of a former school site because of a disagreement over how it will be developed.

Shipley-based Magellan Residential Ltd wants to build 23 homes on the former Nab Wood Middle school site on New Close Road, Nab Wood.

But Shipley Area Planning Panel deferred the application last month, asking for more houses on the site and eco-friendly features such as solar panels and trees.

Councillors have been told Magellan does not want more houses because it believes the Office of the Deputy Prime Minister would throw out such an application. A report to the planning panel says the developer believes that, if the Government turns down the scheme, that "would therefore deprive the Council of a capital receipt from the disposal of the site".

Magellan's plans return to the panel on Thursday as originally submitted.

Because the site is in the green belt, the proposal will eventually have to be considered by Bradford Council's regulatory and appeals panel which, in turn, passes it on to the ODPM for a decision.

Magellan managing director Stephen Day said: "We have worked very hard with the planning officers to come up with this scheme and we are very happy with it."

He said his company had spent a year devising the scheme which included consultation with residents and planning officers.

He said the company would review its options, including appealing, if the plans are refused on Thursday but the company would be reluctant to pull out at the stage.

Bradford Council's asset management department refused to say how much the land was being sold for but said it was a "substantial amount" which would be used towards funding various capital projects.

The planning panel meets in the council chamber at Shipley Town Hall on Thursday from 10am. The meeting is open to the public.