The deal, which has a gross development value of £60m, will see sale receipts from 120 new homes fund the sports centre.

The council will also benefit from any future uplift in sales values of the homes during construction as well as any surplus land value from both sites.

Under the proposal, the Jubilee and Moberly sports and leisure centres in Queens Park, North London will be demolished and a new consolidated sports centre built at the Moberly site which will be larger than the two existing centres combined.

The Moberly sports centre will have a 25m, six lane swimming pool, eight court sports hall, health and fitness facility with 80 homes above.

A smaller community sports facility and a further 40 homes will go on the Jubilee site on Caird Street to fund the new leisure facility.

Andrew Telfer, CEO at Regen, said: “This is an excellent example of how Regen is able to work closely with the public sector to creatively fast-track, design, fund and deliver much needed community facilities through intelligent use of land assets in a difficult economic environment.

“It is not an exaggeration to say that elements of our model are unique to Regen.

He added: “We’re ambitious to deliver similar schemes including working with public sector partners who are seeking to replace or modernise ageing public assets such as leisure facilities.”

It comes just over a month after Regen was given the planning go-ahead to partner with Poplar Harca as joint developer for over 1,100 homes in east London.