St. Modwen and its partner Advantage West Midlands will now deliver the scheme in three phases with construction to start by the end of the year.

The first  phase will contain an 85,000 sq ft Sainsbury’s store, car park, two acre urban park and elements of the new high street.

Phases two and three will comprise an 80-bed hotel, 40 apartments, further retail space and car parking, with a total of 80,000 sq ft of retail space and restaurants being delivered in addition to the Sainsbury’s store.

The town centre scheme is part of a wider £1bn regenration of the former home of car giant MG Rover.

Bill Oliver, chief executive of St. Modwen, said: “We are delighted to have received planning permission for the new town centre at Longbridge.

“With Sainsbury’s already signed up to take the foodstore and many discussions taking place with other potential retailers and occupiers, we will now look to commence construction of the first phase before the end of the year.”

Cllr Timothy Huxtable, Cabinet Member for Transportation and Regeneration said: “Once complete, Longbridge town centre will establish a new heart for the local community and a focal point for the overall £1 billion regeneration of the former MG Rover works.

“The development will provide an important economic boost to the area and create a diverse range of employment opportunities, potentially creating over 1,000 jobs.”

Michael Adenmosun, Regional Development Executive for Sainsbury’s Supermarket Ltd said: “The regeneration of Longbridge and the landmark town centre scheme will transform the area and breathe a new lease of life into Longbridge. Sainsbury’s is proud to be part of this vision and make a difference to this community.”

The £66m Bournville College, which is situated within the Longbridge town centre site, is nearing the end of its construction programme and will welcome its first students in September 2011.

Elsewhere at Longbridge, the first two office buildings to be completed at the Technology Park are virtually fully let.

Construction work is underway at Park View, the first new residential scheme at Longbridge, which will deliver 115 houses and apartments.

A planning application is currently being prepared for up to 750 homes and a a new park at Longbridge East, while planning permission was recently granted for a new ‘myplace’ youth centre for 13-19 year olds, which will be developed with Birmingham City Council.