U2 have announced that they are going to stay in Dublin's docklands despite a ruling that their present studio must be demolished.

A statement from the band said arrangements had been made with the Dublin Docklands Development Authority to move to a new building. Details of the development will be announced in the next few weeks.

The band lost their bid to prevent the demolition of their studio in Dublin's south docklands earlier today, when An Bord Pleanála gave the go-ahead for a development at Hanover Quay.

The Dublin band has been recording at the studio since 1994, including their latest multi-million seller 'All That You Can't Leave Behind'.

The Dublin Docklands Development Authority placed a Compulsory Purchase Order on a row of buildings at Hanover Quay, arguing that the public would require access to the waterways from a civic amenity area it is developing nearby.

The plan was opposed by U2 who argued their studio, which opens out on to the waterway, should not be demolished as, in part, it constituted musical heritage.

The band told an oral hearing at the Gresham Hotel in January that they were identified with the docklands, having recorded at the single storey plus mezzanine building since 1994 and, prior to that, at Windmill Lane.

However U2 later hinted there might be a compromise when they said that they did not want to move, but might if a similar building could be located nearby. Talks failed to reach a compromise.

Another opponent was businessman Harry Crosbie, who will now lose two adjoining warehouses. His home, which is also in the same area, was not subject to the CPO.