Smithfield Market, near St Paul’s Cathedral, has endured years of uncertainty and was facing an £800-million ($1-billion) move to a new purpose-built site in the eastern suburb of Dagenham.

But members of the City of London Corporation approved a decision to shelve the project, saving it money and freeing up prime real estate for redevelopment but ending 900 years of history.

The Billingsgate fish market had also been slated to move from its home near the Canary Wharf development in east London to Dagenham.

In a statement, the corporation said traders, who work through the night to supply butchers, hotels and restaurants across the capital, could continue operations until “at least 2028”.

“The decision reflects a careful balance between respecting the history of Smithfield and Billingsgate Markets and managing resources for this project responsibly,” the local authority said.

“Project costs have risen due to a number of external factors, including inflation and the increasing cost of construction which have made the move unaffordable.”

The Museum of London is moving from its old home in nearby Barbican into part of the listed market buildings, which date back to the mid-19th century.

“We’ve worked closely with the traders and thank them for their input and understanding,” said City of London Corporation policy chairman Chris Hayward.

“We’re committed to making sure they have the financial support and guidance they need to transition seamlessly and successfully to new locations.”

The leader of Barking and Dagenham Council, Dominic Twomey, called the decision “disappointing”, despite the financial pressures on the corporation, which has pumped millions into the new site.

“We are committed to continue working with the City of London Corporation to unlock the huge potential of the Dagenham Dock site to bring new employment uses and high-quality jobs for local people,” he added.

The corporation said it would submit a bill seeking UK parliamentary approval of its decision on Wednesday.