Tom Hicks, the embattled Liverpool co-chairman, will come under increased pressure to prove that he can raise the funds to build the club's proposed new stadium in Stanley Park after the latest designs for the troubled project were approved yesterday.

Liverpool City Council announced that it had approved the new designs for the stadium, which were unveiled by Hicks amid great fanfare in January, but there are serious doubts within the club about whether the Texan has - or can generate - the £300 million needed to build the stadium.

Sources indicated last night that there are no plans to begin construction in the foreseeable future and that, with Hicks at loggerheads with George Gillett Jr, his co-chairman, the proposed 71,000-capacity stadium - initially built to a capacity of 60,000 with a view to expansion - could remain a pipe dream.

Gillett intends to sell his 50 per cent stake in the club to Dubai International Capital (DIC), the private equity investment arm of the Arab state. Hicks retains ambitions of buying out Gillett and assuming sole ownership of the club, having vetoed Gillett's proposed sale to DIC in March, but despite enlisting the help of Merrill Lynch, the financial management and advisory company, he has not yet raised the funds that he requires, with an unforgiving financial climate raising further doubts as to whether he will be able to do so.

Sources have described the impasse as “the major issue for the club”, saying that Hicks will come under severe pressure either to prove that he can generate the funds needed to take Liverpool forward or to sell his stake in the club to DIC and allow Gillett to do likewise.

The design approved yesterday is the third that has been submitted to Liverpool City Council, with Hicks and Gillett having been forced to scale down the grandiose original design that they unveiled in July last year.

When the new plans were revealed in January, Hicks boldly stated that Liverpool supporters “should have high expectations for the future: a premier sporting experience at their new stadium at Stanley Park and a winning club on the pitch for years to come”, but yesterday there was a more sober announcement on the club's official website, saying only that Liverpool “welcomed” the council's decision and “is committed to taking the stadium project forward and to starting on site as soon as possible” with a view to relocating in time for the 2011-12 season.

It also remains to be seen what level of funding Rafael Benítez, the manager, will be given to strengthen his squad this summer. Benítez has been active in the transfer market, making bids to sign Gareth Barry, the Aston Villa captain, Aaron Ramsey, the highly rated Cardiff City teenager, and Philipp Degen, the Borussia Dortmund full back, but sources at Anfield have indicated that the majority of new signings are likely to be financed by the sale of fringe players, such as Scott Carson, who is on loan to Villa, John Arne Riise, Jermaine Pennant and Peter Crouch.

A pre-contract agreement to sign Degen on a free transfer is in place, while Benítez is confident of success in his pursuit of Barry, having offered players such as Carson, Riise and Pennant as makeweights in any deal for the England midfield player.

Barry is regarded as a priority signing for next season, particularly as Lucas Leiva, the Brazil midfield player, is likely to join Javier Mascherano, of Argentina, in missing the start of next season to play in the Olympic Games football tournament in Beijing.