Developer Stanhope was selected to deliver the Town Centre North scheme last tonight, ahead of rivals Development Securities and Lend Lease.
Plans for a retail-led regeneration of the town have had a chequered history.
Developer Grosvenor was picked as preferred developer for a more ambitious 1.2m sq ft scheme several years ago but these were sunk by the recession and prompted the council to find a new partner.
John Lewis is considering opening a store and the new scheme will be scaled down to around 500,000 square feet.