The stunning reversal comes as a relief to critics of the plan to put a $1.3 billion arena near City Hall at the edge of Chinatown.

Plans to build an arena for the Sixers in Center City have fallen through, and the team plans to stay in South Philadelphia, sources close to the negotiations say.

It is a head-spin development from the fight the 76ers have lodged over the last two years when it sought to build a new arena in Chinatown and close to the city’s center, and as it went to battle with Comcast,

The Philadelphia 76ers and Comcast Spectacor announced, on Monday, plans to build a new arena in South Philadelphia that will open in 2031. The arena will also be home to the Philadelphia Flyers.

The Sixers had gotten approval for a controversial new arena Center City, on the border of Chinatown, but changed plans.

The team's deal with Comcast Spectacor in South Philly includes investments on East Market Street, but few details are known.

Mayor Cherelle Parker said that the city will “start from scratch” on a new community benefits agreement, canceling the hotly debated plan with the 76ers and making way for a new one now that the stadium is planned for South Philadelphia.

South Philly residents are sounding off after the Philadelphia 76ers announced they are abandoning the $1.3 billion plans to create an arena in Center City, moving the Sixers into a new arena in South Philly.