Members of Lancaster City Council's planning committee approved outline permission for the scheme after a two-day meeting at Lancaster Town Hall.

Councillors voted 15-4 in favour of the plans, which will see a 10-acre site redeveloped to include 320,000 sq ft of retail space, including a 97,500 sq ft Debenhams department store, 179 homes and a central piazza.

Subject to approval by the Secretary of State work could start during 2010/11, with completion in 2012/13.