Chelsea have lost out in their bid to move to Battersea Power Station. Photo: Dominic Lipsinki/PA Wire

Chelsea have failed in their quest to build a new stadium at Battersea Power Station after the administrators revealed they had chosen a joint bid by two Malaysian companies - SP Setia and Sime Darby.

The European champions are considering moving away from their Stamford Bridge home as they believe the facilities prevent them from bringing in the matchday revenue that Arsenal and Manchester United, who have much bigger stadiums, can bring in.

A statement from Ernst & Young read: “Following an extensive global marketing campaign, undertaken by Ernst & Young Real Estate Corporate Finance and Knight Frank LLP, the Joint Administrators are pleased to announce that on Wednesday 6 June 2012 they entered into an exclusivity agreement with SP Setia and Sime Darby and are working towards a timely exchange and completion of the site and associated land.”

SP Setia and Sime Derby announced in a release to the Malaysian stock exchange this morning that their £400million “multi-use real estate regeneration project” bid had been successful.

The companies also plan to build a tube station on the premises that will connect to the Northern Line.