It was the chance for a triumphal return for Arlene Phillips after the row over her Strictly Ballroom axeing.

But in a fresh setback for the 66-year-old choreographer, Sacred Flame — the dance spectacular she was directing at the O2 — has today been shelved.

Axed: Arlene's career takes another blow

Producers said the show — one of the most ambitious planned for the London stage with a troupe of more than 60 dancers — will not be ready for its world premiere on 28 December.

The Latin American musical extravaganza was unveiled at a chaotic press conference last month at the height of the dispute over her replacement by 31-year-old singer Alesha Dixon.

Phillips, whose choreography credits include Grease, We Will Rock You and Starlight Express, described Sacred Flame as a return to her theatre “day job”. She said: “For years now I have done two or three shows a year. I have always loved theatre and I will always do it.”

Although Sacred Flame was only originally scheduled for one night, it was hoped that it could continue for an extended run at the Docklands arena before going on tour.

It is another blow for the O2 after the loss of revenue from the planned run of 50 Michael Jackson concerts.

The show, which the producers hope to take around the world, is set in modern-day Latin America. It tells the story of Peruvian teenager Anton, who returns to the country of his birth to understand why he was given away as a child.

He is pursued by the villain and lead singer Mano Negra, due to be played by Wet Wet Wet frontman Marti Pellow.

Theatre industry sources said there had always been scepticism that a show on the scale of Sacred Flame could be put together in three months.

One said: “It was only this month that they got the full cast agreed. They had no choice, if you do a massive show like this and its not right on the night that's a disaster. The show must go on, but not now.”

No new date has been set for the show, for which tickets cost between £30 and £80, but it is unlikely to appear before next Autumn. Fans who have already bought tickets have been offered a full refund.

In a statement producers Peppermint Pictures said: “We have made the decision that in order to deliver a truly first-class show that fulfils the vision of the creative team, extra time is needed in the pre-production stage.

“The show is a massive technical undertaking — it pushes the boundaries of traditional musical theatre into arena spectacle.

“Large-scale video technology combined with rock-and-roll scale lighting and pyrotechnics, and a dance company of more than 60 performers, mean it will not be possible to meet the strict timeline for the arena shows in December.”

On his website Pellow told fans: “I know that many people will be disappointed but it will be better to see this show in all it's glory than see it when it is less than 100 per cent ready. Then it would be criticised and seen as a failure. We don't want that.

“Everyone knows that Marti gives 110 per cent to everything that he does and it's only right that any show that he goes into is up to his very high standards.

“We all want this to be a big success for him and a show that's not ready just won't do.”