IT was set to transform the streets of Southampton into a motoring extravaganza.

Organisers billed the city as the perfect venue for the country's top 12 drivers to showcase their sport at speeds of up to 80mph.

However, despite potential sponsors prepared to raise £35,000, the Department for Transport has put the brakes on next month's car rally.

It says the 30mph speed limit on the city centre's roads cannot be lifted for the Dunlop MSA British Touring Car Championship.

Southampton City Council could face prosecution if any exception to the rules were made for the sporting spectacle, entitled "Speed Southampton - British Touring Cars Live!"

The hunt to find an alternative venue proved an impossible race against time for the June 1 date. Plans to keep speeds below 30mph were also scrapped.

Now Southampton City Centre Management, the City Council and the British Touring Car Championship have postponed the event until next year, if a new venue can be found.

City manager Ian Rothwell said: "We have the business support. What we do not have is the legality and that is a real shame."

Mr Rothwell said that following the Daily Echo's appeal last month the numbers of potential sponsors had increased.

He said they had been "positive" and "enthusiastic" about the event, which expected to attract crowds of up to 15,000 and thousands of pounds for the local economy.

Alan Gow, British Touring Car Championship services director, said: "I am bitterly disappointed. Safety is of paramount importance and we make sure all measures are put in place.

"These are professional drivers driving well within their limits. It is unfortunate this has got in the way."

Southampton was chosen along with Edinburgh, Milton Keynes and Newcastle to host the event, filmed by ITV and designed to promote the championship's ten races.

Plans were unveiled last month for the souped-up £120,000 cars to take several laps of the city centre, weaving between the Civic Centre, past Andrews Park and down East Park Terrace.

Other attractions would have included stalls, sideshows, giveaways and opportunities to meet the teams.

The event is able to take place in Edinburgh because the Scottish Parliament has different rules relating to speed limits and in Newcastle a private road is used. In Milton Keynes, where the roads have a 30mph limit, organisers turn a blind eye to the Department for Transport's policy.