Detectives investigating George Reynolds have applied to court to permanently confiscate £1/2m which they seized from his car last month.

Magistrates sitting in Newton Aycliffe, County Durham, were due to hear the application this afternoon but the case has been adjourned until July 22.

Mr Reynolds, former chairman of Darlington Football Club, was arrested and questioned on suspicion of money laundering for seven hours, along with his cousin Richard Tennick and personal assistant Ian Robinson, after police swooped on his car in High Etherley, near Bishop Auckland, on June 14.

Two days later, officers from the North-East's Regional Asset Recovery Team were given permission by magistrates to keep the money for 28 days.

A Durham Police spokesman said: "Officers have now made an application for the forfeiture of those monies seized, made under the Proceeds of Crime Act.

"Copies of the application were served by the officers on the magistrates' court, on Mr Reynolds and on his solicitor yesterday.

"The issue of the forfeiture notice now requires the court to list the matter for a direction hearing in not less than seven days.

"Inquiries by the regional asset recovery team are still continuing and we do not want to compromise that investigation by saying anything further at this stage."