The controversial Wembley stadium project was further delayed by three months last night after it emerged that a confidential report was critical of the way huge contracts had been awarded for the venture.

All those involved in the project agreed, however, that the venue for a new national stadium should be Wembley, and not Birmingham. However, aspects of corporate governance relating to the FA subsidiary set up to oversee the development, Wembley National Stadium Ltd (WNSL) and other legal guarantees need to be reviewed and tightened.

The entire project is expected to cost £750 million sterling, making Wembley the most expensive sports stadium in the world. It will be constructed by the Australian company Multiplex.

The investigation covered the period up to September 2000 when Ken Bates, chairman of Chelsea football club, was in charge of the project. The report was critical of the procurement process and recommended specific steps to be taken by WNSL for close monitoring of the project. There was no evidence of wrongdoing.

Bates was removed as chairman of WNSL last December after criticisms that his plans for Wembley stadium were too grandiose.

In a surprise move, the FA revealed that athletics had not been ruled out, and that a running track could be installed on a raised platform. This was initially rejected by the government.

Thierry Henry could be banned for three matches and heavily fined if he is found guilty of misconduct by the FA, which seems certain to proffer the charge because of the Arsenal striker's angry remonstrations with referee Graham Poll after the defeat by Newcastle on Tuesday night. Poll has confirmed he will refer in his report to the "unseemly incident".

Former Italy coach Cesare Maldini has been chosen by Paraguay to manage their team at the World Cup. The 69-year-old will replace Sergio Markarian, sacked eight days after qualification.