The extension to the shopping complex will include an 80 bed hotel, 15,500 sq ft of extra retail and a restaurant unit on the  Millgate site.

William McAlister, Associate Director of Scarborough Development Group, the developers, said: “We have worked closely with the council throughout the planning stages of the final phase of the Grand Arcade development and believe that once complete, it will revitalise the town centre and provide a major boost for residents and visitors.”

“We are now in discussion with a number of hotel operators, restaurateurs, retailer and other leisure operators including a gym.

“We anticipate being in a position to commence construction later this year with completion expected towards the end of 2014.”