A stand-off over a contentious loyalist bonfire in Belfast has ended after councillors backed down over plans to demolish it. 

Belfast City Council abandoned an attempt to remove the structure, which has been built in a leisure centre car park.

The move came after its hired private contractor pulled out of the job following the appearance of sinister graffiti threats close to the site purporting to identify the company.

The PSNI had warned the council that sending in contractors, escorted by its officers, could have prompted serious disorder orchestrated by the East Belfast grouping of the paramilitary UVF, with the risk of gun violence.

The dispute had arisen ahead of the traditional "Eleventh Night" celebrations, when huge bonfires are lit in loyalist areas across Northern Ireland to usher in the Twelfth of July, the main date in the Protestant loyal order parading season.

While most fires are lit without major incident, a number continue to prove contentious, with the authorities having taken action in recent years on structures deemed unsafe.

The bonfire in the Avoniel Leisure Centre car park has proved controversial this year.

Without a contractor willing to do the work, councillors acknowledged that their plan to demolish it had to be axed.

They have instead urged police to pursue bonfire builders for trespassing on the Avoniel site.

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Councillors, who have asked police to investigate how the names of contractors were leaked from confidential deliberations, have also agreed to form working group to see how to handle the bonfire issue in coming years.

Bonfire builders had maintained a 24-hour presence at the gates of the site since the council's strategic policy and resources committee first voted to take action on Monday.

They barricaded the gates in an attempt to stop the demolition, with the leisure centre forced to close.

A number of community events have also been staged at the site, with loyalists gathering to show support for the bonfire builders.

The council committee reaffirmed its decision to dismantle the bonfire at two subsequent meetings - on Tuesday and yesterday.

But at the fourth specially convened meeting in four days on Thursday morning, they ditched the plan.

Responding to the city council move, PSNI Assistant Chief Constable Mark Hamilton said he had resources ready to support any contractor.

"I utterly condemn the intimidation of contractors and recognise the impact this will have had on them, their families and indeed on the council who had sought their services," he said.

"Such intimidation must not be tolerated.

"The complaint from Belfast City Council citing aggravated trespassing at Avoniel Leisure Centre is now being investigated."

Sinn Fein councillor Ciaran Beattie said he was "disappointed".

He added: "Belfast council made a democratic decision to remove all bonfire materials from that site.

"This site has been occupied for a number of days now, illegally. We have informed anyone on that site they need to remove themselves, they are trespassing.

"It's disappointing that the contractors have been threatened and the threat has came through to the council, from the police, to say the east Belfast UVF have threatened contractors and possibly with the use of firearms, which is a very worrying situation.

"This bonfire is illegal. It's a council leisure facility. It's been occupied, the gates have been barricaded, there's been UVF flags put up around the site.

"A bonfire has been put in the car park without permission. This council still stands firm, this is an illegal bonfire."

Alliance councillor Michael Long said it would be "counter-productive" to remove the material on 11 July.

"We have got to take on board that there are children, young people and older people in that area," he said.

"It is really disappointing that a democratically taken decision in Belfast City Council cannot be implemented, and that is a worrying development."

DUP councillor George Dorrian, who had argued against intervention at the site, said: "What we wanted was a positive outcome to this situation, we certainly didn't want anything to be inflamed or any confrontation with the police or council.

"We think this is sensible way forward. We don't have contractors in place and that's the reality of where we are.

"We want to take this forward and already look towards a more positive bonfire season and cultural celebrations."

The barricade had been removed from the site yesterday.

At 5am this morning, two PSNI vehicles arrived at the site and a statement was played over the loudspeaker urging people to vacate the site.

This afternoon, after news filtered through about the council decision, the gates were unlocked to allow members of the community to collect tyres that bonfire builders had removed from the pyre earlier in the week in a bid to allay council concerns.

Police continued to maintain a low-key presence in the wider area.

Robert Girvin, from the East Belfast Cultural Collective, the group representing the bonfire builders, said he was "glad" the council had reversed its plans, however he criticised the decision to pursue prosecutions.

He also denied the UVF was involved.

He said: "This is a public park, there's a child's playground here and football pitches. Are they going to prosecute the people of Avoniel for using Avoniel Leisure Centre?

"Pettiness in the extreme. It's just getting daft.

"Unless the UVF is 70-year-old grannies and 12-year-old children, there's no UVF involvement here."

A Belfast City Council spokeswoman said: "The committee reiterated its support for the PSNI to take action against those committing and orchestrating aggravated trespass at Avoniel.

"Members again expressed their concern about the involvement of the east Belfast UVF in the unlawful occupation of the Avoniel site."