The group had been looking at options to move out of town.

The Co-op said the headquarters, for its 3,000 staff, would be a new build in the city centre but no sites had yet been chosen for its location.

The group is currently working on a master plan for its existing 20-acre city centre site which will anchor a major new mixed-use quarter in the northern part of the city centre and provide significant opportunities to drive regeneration in this area.”