The supermarket giant previously intended to build more than 300 homes in a large apartment block, but has dropped the housing plans blaming the collapse of the property market.

The development at an old B&Q warehouse site will include a youth centre and pedestrian bridge alonside a 540-space car park and is expected to be open by late 2012.

City council cabinet members have already agreed for the site to be used as a supermarket. A final decision on the detailed plans is expected by May 3.