Prime minister Gordon Brown’s flagship eco-towns initiative will “certainly” go ahead despite press reports saying it has faltered, a senior government civil servant has told Regeneration & Renewal.

Newspaper reports in The Observer last weekend said the Department for Communities and Local Government (DCLG) had concluded only one or two of the 15 short-listed eco-town projects were genuinely viable, citing a source close to the discussions.

Some bidders have already dropped out, while others are said to have been alarmed by the house price crash and the collapse in sales, claims the news report.

But Henry Cleary, deputy director of housing and growth programmes at the department, said: “Sources close to the discussions don’t get much closer than me and I can assure you that there is no knowledge here [within the government] about this figure of two [eco towns].”

He said press reports suggesting only “one or two” would go ahead were the views of external experts who were entitled to their opinion but were not accurate.

He added: “There is no question of us not proceeding with the policy as we have always said we would.”

A DCLG spokesman added: “We have consistently said we are looking to build up to 10 eco-towns and have made clear that we will shortlist up to 10 potential locations by early next year.”

The DCLG hopes to shortly release the draft planning policy statement and a Sustainable Appraisal document.

Gideon Amos, chief executive of the Town and Country Planning Association, said it was “unlikely” that there would only be one or two eco-towns built. “There are significantly more than two proposals that are consistent with development plans,” said Amos.