The club maintain the new stadium remains part of their plans
Portsmouth have postponed plans to build a new stadium and will focus instead on redeveloping their existing home at Fratton Park.
Last year, the club unveiled ambitious plans for a new 36,000-capacity ground overlooking Portsmouth harbour.
But the project has been hit by several problems, including the credit crunch.
In the short term, the club has now decided to renovate Fratton Park, building two new stands to increase capacity by 10,000 to 30,000.
In a statement on the club's official website, Portsmouth insist the new stadium remains part of their ambitions, but "with a view to completion in line with the Football Association's World Cup bid for 2018/2022".
The first phase of the Fratton Park redevelopment, which will bring capacity up to 25,000, is scheduled for completion in time for the 2010-11 season.
The remaining work will be completed the following year.
Portsmouth announced plans for their new stadium in June 2008, with the club riding high having achieved their highest ever Premier League finish and won the FA Cup, but since then they have suffered a dramatic dip in fortunes.
With Pompey a reported £80m in debt, owner Alexandre Gaydamak put the club up for sale in December.
He had already seen manager Harry Redknapp leave for Tottenham, and in January, star players Jermain Defoe and Lassana Diarra followed him out of the door.
Redknapp's replacement, Tony Adams, stepped down from his post in February after managing just two wins in his 16 Premier League games.
However, the club maintain that it is not only financial considerations that have forced them to postpone the building of their new stadium.
They also cite the need for new motorway exits and the building of a new bridge as well as difficulties with planning permission.
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