The controversy surrounding the future of a Norfolk pub has taken a new twist after a council said it was not prepared to buy the building from its owner.

South Norfolk Council has refused a purchase notice from Graham Scott, owner of the King's Head Inn in Pulham St Mary, near Diss, and which has been closed since 2007.

In October, Mr Scott was denied permission to knock it down so 18 homes could be built on its site – leading to a petition from residents asking for the council to compulsorily buy the pub and hand it over to the community to run.

Mr Scott then asked the council to buy the land in a process called a reverse compulsory purchase under the Town and Country Act 1990.

That bid has now been rejected by the council's cabinet.

A report to the behind closed doors meeting of the cabinet stated: 'It was the opinion of officers that the Purchase Notice should be declined, as the owner of the King's Head had failed to demonstrate that the property was incapable of reasonable beneficial use following the carrying out of permitted development.'

Council leaders stressed their support for continued negotiations with Mr Scott and the local community and if that does not work the potential compulsory purchase is to be explored.