One of the developers chosen for the Greyfriars project has said it remains in the running to deliver its part of the deal.
The news comes after a Northampton Borough Council cabinet's report to recommend members approve an end to the negotiations with Carter Endurance on the basis that it has not been able to "achieve the original offer".
Carter Endurance, a consortium comprising R G Carter Construction and Endurance Estates, was the winning bidder for the development with its proposed scheme to include student accommodation and retirement apartments, residential flats to let, a 110-bed hotel, restaurants, retail kiosks, a gym, a cinema or trampolining facilities and a new coach station.
But this week it emerged that the developer is unable to deliver the housing which forms a vital part of the agreed proposal for the residential-led project.
However, Endurance Estates remains confident it can hold up its end of the bargain after they revealed they had submitted a revised offer for the Greyfriars project.
Endurance Estates director Tim Holmes said: "Endurance Estates tabled a revised offer for part of the scheme to deliver the cinema and family-friendly dining, student accommodation and a new hotel to be run by Marriott.
"The proposal set out a mechanism to work up a masterplan for the whole to include new linkages into the Grosvenor Centre and an innovative pedestrianisation scheme.
"We have offered to help the council explore alternative funding models for the residential element of 250 new homes at the western end which proved difficult to finance after the original housing association operator withdrew.
"We have at all stages been open and transparent with the difficulties that we faced on the residential components given the high cost of construction and relatively low sale or rental values in the town centre.
"We understand the council have taken legal advice that indicates that a part sale may not be possible.
"We are keen to explore with the Council whether we can, in the light of recent interest from an alternative funding source, be given a further period of time to establish whether we can continue with the proposals which would deliver the whole scheme.
"We are encouraging the council to discuss this approach at their next cabinet meeting."