The multi million pound regeneration scheme - being developed by the council, partner British Land Canada Quays (BLCQ) and Barratt Homes, will also includes a library, a civic plaza, leisure facilities, shops and green space.

The homes many of which will be affordable will be built to high eco-standards.

Earlier this month Barratt Homes signed a development agreement to build approximately 900 of the 2,800 homes planned for the scheme as a whole.

British Land Canada Quays (BL Canada Quays) is a 50:50 joint venture company between The British Land Company and Canada Quays. It was chosen in July 2003 as the council's preferred master planning team and development partner.

David Taylor, chairman of BL Canada Quays, said: "We are delighted to have approval on the first phase of the scheme. I must thank the community and other stakeholders for all their feedback and support. The council and all the those involved have worked really hard since the original competition in 2003 and we are now looking forward to working with all our partners over the coming months to progress our plans to regenerate the area."

Consultation in December last year found that over 90% of local people were in favour of the plans, and rated the plans as either good or very good.