The firm in joint venture with developer Clive Fletcher Developments has been selected to deliver the scheme, which is being backed by Wyre Forest District Council, the Homes and Communities Agency and British Waterways.

The project is part of the council’s ReWyre regeneration initiative. This aims to create a new pedestrian gateway to the canal basin area from Bridge Street with a mixture of new surrounding shops and homes.

Councillor John Campion, leader of Wyre Forest District Council, said: “At present few visitors get to experience the basin area as it is cut off from the main town, this development opportunity will open up pedestrian access to the historic core as well as attracting some new businesses to the town and providing some new homes.”

It is anticipated that a planning application will be made in Spring next year.

Stuart Buckley, development manager for the HCA Midlands, added: “We are pleased to have appointed Clive Fletcher Developments and Thomas Vale to develop this site, which will reconnect Stourport.

“This scheme will enhance the commercial and leisure offer for the town and provide a high quality canalside scheme. It will create demand for homes and jobs and boost local economic growth.”