The new “urban quarter” will include 600,000sq ft of additional shopping space, 1,000 residential units and new leisure, office, hotel and conference facilities on the existing St David’s and Quadrant sites and car parks at Paxton Street and County Hall.

The new quarter, which will have sea views, will be next to Swansea’s marina.

Swansea Council’s leader Chris Holley said: “The appointment of Hammerson and Urban Splash is a massive statement of intent by Swansea. Hammerson is one of the leading property developers in Europe.

“Equally, Urban Splash is one of the most innovative city centre residential developers with a proven track record in Manchester, Leeds and Liverpool which have all seen major regeneration and investment in recent years.

“This is probably the most significant announcement in the past 50 years for Swansea and it follows major private investment in the city centre, including the £30m retail development at the former House of Fraser store on Princess Way.”

Swansea Council, the Welsh Assembly Government and the developers will be working together during the next 12 to 18 months to secure planning consent.