U.S. & World News

SAN FRANCISCO (CBS) ― The San Francisco 49ers ended negotiations with the city about building a new stadium and plan to relocate to Santa Clara, a source representing the city and close to the negotiations told KPIX-TV Wednesday night.

"We've been negotiating in good faith, but we cannot mortgage our future for this. We are willing to talk. But they won't talk to us anymore," the source told KPIX-TV.

Owner John York notified Mayor Gavin Newsom of the team's decision earlier Wednesday, according to the mayor's spokesman, Peter Ragone.

A spokeswoman for the 49ers said York and team officials would hold a press conference Thursday morning.

The team said in a statement that it would be exploring a new stadium in Santa Clara, near the Great America amusement park and the Santa Clara Convention Center.

The 49ers headquarters are also currently based in Santa Clara.

"We're excited to work with Santa Clara officials to discuss this project," York said. "Based on our initial analysis, Santa Clara has strong potential to deliver the game day experience our fans deserve."

York said the team would not consider changing its name under any circumstances.

"Nothing will persuade us to change the name of the San Francisco 49ers, one of the most storied brands in the world of sports," he said.

If the 49ers are unable to relocate to Santa Clara, the team said in a statement that it plans to keep the team "exclusively within the Bay Area."

The city and the 49ers had been talking over the last few months about building a privately financed stadium at Candlestick Point that was going to be part of the city's bid for the 2016 summer Olympics.

Ragone did not know how the 49ers' decision would impact the Olympic bid. San Francisco, Los Angeles and Chicago are the three cities competing to be the U.S. Olympic Committee's choice to bid on the 2016 games.

The team's current lease at Candlestick runs through the 2008 season and the team holds three five-year options that could extend it through 2023.

The current stadium at Candlestick is one of the most run-down in the league, leading to the team's desire to seek a new stadium with revenue-generating suites and luxury boxes. The plan to build a stadium also included public housing, retail and office space.

The city was not going to contribute any money to the stadium but was willing to possibly help with some of the infrastructure costs.

According to the statement, the team decided after studying the area around Candlestick Park for the past year that the site needed too many infrastructure and public transit improvements, as well as one of the largest parking garages in the world.

The team said the cost of the infrastructure improvements could have exceeded the cost of the proposed stadium, which was estimated to cost between $600 million and $800 million. Also, the team said it was unlikely it could achieve its goal of opening the new stadium in time for the 2012 season.

York assured San Francisco officials that he was only negotiating with the city, but Ragone said the team had talked in recent weeks to Santa Clara officials about the move.

Ragone added that York told the mayor he would consider moving the team somewhere else in California. Los Angeles and Anaheim also are seeking an NFL team.

The mayors of the two cities met last month with new commissioner Roger Goodell to offer their competing plans to lure a team back to southern California.

Los Angeles city leaders want to build a new stadium within the walls of the historic Memorial Coliseum, featuring 200 luxury boxes and 15,000 club seats at a cost of $800 million.

Goodell also met with Anaheim Mayor Curt Pringle about his city's plans to sell the NFL 53 acres at the below-market price of $50 million to build a new stadium adjacent to Angel Stadium.

The Los Angeles area hasn't had an NFL team since after the 1994 season when the Raiders returned to Oakland and the Anaheim-based Rams moved to St. Louis.

(© 2006 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)