Blackpool and The Fylde College's ambitious bid to build a further education campus on Rigby Road and nautical college in Fleetwood were among 144 projects to hit the rocks in March when the Government cash pot for the scheme ran dry.

Now, the funding body – the Learning and Skills Council (LSC) – has announced a short list of 13 colleges, including sites in Manchester, St Helen's and East Cheshire, who may now receive funding.

But Blackpool is not among them.

College bosses are still optimistic the multi-million building work will go ahead as planned.

A spokeswoman for Blackpool and The Fylde College said: "The college never expected to be in the first wave of funding.

"Our project was not at such an advanced stage of the planning and design process when the applications were put on hold.

"We continue to lobby our case as powerfully as we can, supported by local MPs, the council, ReBlackpool and the Northwest Regional Development Agency.

"We remain optimistic the LSC will support our project when the second wave of funding is announced in the autumn."

The 13 shortlisted colleges will be asked to make cost reductions to their initial project plans and to maximise their own borrowing to enable the schemes to go ahead.

All 13 colleges have been told they will receive funding only if the overall cost is reduced. Another shortlist is due in autumn.

Mark Hayson, chief executive of LSC resigned in March blaming "well publicised difficulties" with the £5bn national building programme for his decision to quit.

The Learning and Skills Council is now working through a new criteria to prioritise the high amount of applications for funding. Among the criteria is the contribution a development would bring to the local economy of towns and the need for regeneration.

Blackpool Council leader Peter Callow says he too remains optimistic about Blackpool's college bid after speaking on Monday to MP Vernon Coaker, the newly appointed Minister of State for Schools and Learners at the Department for Children, Schools and Families.

He added: "We have to remain hopeful our plans for the college will be approved. I was deeply disappointed to hear of the delay, this scheme will make an enormous difference to the outlook of young people in Blackpool.

"I mentioned my feelings and the feeling of the whole town to Vernon Coaker when I spoke to him on Monday and he said he would look into Blackpool's bid and report back to me."