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.

The Philadelphia 76ers have decided not to build a $1.3 billion downtown arena, a surprising move that comes just weeks after the team received approval for the controversial project from the city council.

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.