Building a shipyard at the Royal Docks in Newham in east London "remains a priority" despite new plans to move two major food markets there, City Hall has said.
The Greater London Authority (GLA) and City of London Corporation last week announced plans to move Smithfield and Billingsgate markets to Albert Island, at the eastern end of the docks.
However, Newham Council has already granted planning permission for a major regeneration project there.
The existing redevelopment plans include building "the first shipyard on the Thames for over a century" but do not include any wholesale food markets.
A GLA spokesperson told the Local Democracy Reporting Service (LDRS) that "discussions are ongoing about how the boatyard can be built alongside the markets".
However, they acknowledged the plans to move the two markets to Albert Island meant the already-approved scheme would have to be changed.
The GLA and the council hope to redevelop Albert Island as part of a wider regeneration of the Royal Docks in the south of Newham.
In a five-year regeneration plan published as recently as March 2024, the two authorities spoke of "bringing forward state-of-the-art industrial spaces" on the island.
They said these would include "a new shipyard delivered by the Port of London Authority" (PLA).
It was to be built by real estate firm London and Regional, which won the contract to redevelop the island in 2018.
Newham Council granted London and Regional planning permission for the regeneration project in March 2023.
Approved plans included the shipyard, a "leisure marina", an "education centre", community facilities, shops and 16 new homes but no large food markets.
However, the City of London Corporation - which operates both Smithfield and Billingsgate markets - announced last week that it wanted to relocate them to Albert Island, which is owned by the GLA.
The GLA spokesperson confirmed that the plans would now be altered to accommodate Smithfield and Billingsgate markets.
The revised scheme will then have to be submitted to Newham Council for planning approval.
The spokesperson said: "The boatyard remains a priority for the GLA and the PLA. Discussions are ongoing about how the boatyard can be built alongside the markets.
"The markets proposal will require some amendment to the current permission but the main principles (comprehensive redevelopment, employment use, etc.) remain valid."
The GLA also suggested a new developer would be brought in.
It said Newham Council and borough mayor Rokhsana Fiaz were "kept up to date with the progress being made" on discussions over the markets.
The GLA said those discussions "were handled by officers in the Royal Docks team, as is normal on such projects".
Speaking at a full council meeting on Monday, Fiaz said the announcement made for a "momentous week for our borough".
She said it was "the culmination of some seven years' hard work, working with council officer colleagues" and could mean £750m would be spent in Newham, creating over 2,200 jobs.