Joint venture developers Orion Land & Leisure and Development Securities have secured £44m in funding to start the first phase of the scheme.

The cash will be used to buy land owned by Transport for London, which assuming the successful outcome of a CPO inquiry, will allow work finally to start in the summer.

The developers plan to rejuvenate the 98-year-old market as part of an ambitious project that will also include 194 luxury apartments up to seven-storeys high and a new row of 13 terraced houses and piazzas.

The redevelopment of the 1.9 hectares site will include 140,000 sq ft of shops and market space.

Matthew Weiner, Development Securities said: “Today’s announcement is a significant milestone for the project which will enable us to progress our plans and start redevelopment later this year.

“Shepherd’s Bush Market is an important and historic London asset and our plans for redevelopment seek to preserve and enhance its significance.

“This is a complex development which illustrates our core strength in creating value through real estate regeneration. We are excited by the benefits that the redevelopment will bring to this part of West London.”