A flagship office block being built at Bradford Interchange could be snapped up by the Inland Revenue for a state-of-the-art call centre.

The multi-million pound development has been short-listed by the Inland Revenue which is seeking a building to house hundreds of staff.

Today the Inland Revenue would not comment on its plans for the city. But the owners of crumbling Eastbrook Hall in Leeds Road revealed they had been rejected by the Inland Revenue in its search for new offices.

Alan McMahon, of Aldersgate Estate, which owns the historic, fire ravaged buildings, said: "We are obviously very disappointed, not just for ourselves, but for Little Germany.

"It seems a shame that an organisation like the Inland Revenue cannot help its regeneration."

He said his company had offered to build new offices for the Inland Revenue at the back of the building, keeping the listed faade. But he said they had been told it was unsuitable after spending £10,000 preparing the building for its possible sale.

Kenneth Morton, director of Landmark Development Projects, which is building a speculative complex at the Interchange, confirmed the Inland Revenue was interested in it.

He said they were in talks but no decision had been made and there was interest in another building. The contemporary Interchange complex was originally turned down by Bradford Area Planning Panel because members said its appearance did not fit in with the surrounding city. The Department of Transport, Local Government and the Regions overturned the panel's decision and said the building could go ahead.

Landmark has no final user for the complex, which will be close to the £35 million Abbey National office block at the Interchange.

Nigel Rice, project director of the Little Germany Urban Village Company, said: "It is very disappointing that the Inland Revenue is not supporting us."

The blow is the second disappointment for the company which had hoped its first hotel would be built in Leeds Road.

The site is now likely to be developed by its owners JJ Gallagher, for homes and offices.