The Hammers’ historic home will be turned into an East End village of up to 700 homes around central gardens, mirroring Arsenal’s former Highbury stadium home in north London.

Signing of an outline agreement follows months of competitive bidding for the eight acre site, which is around twice the size of Highbury Stadium Square, also developed by Galliard.

West Ham were initially believed to be in talks with supermarket groups with a valuation of £18m for the land.

It is believed the deal will bring at least twice that amount now the end use is housing.

The club said it was impressed with Galliard’s links to the local community and the developer’s commitment to honour the history of the Hammers at the Boleyn Ground  – their home since 1904 –  as part of its redevelopment plan.

Galliard said it would commission a statue of Bobby Moore to stand in a central landscaped memorial garden where the pitch is is currently laid.

Also it pledged to ask fans to enter a poll to name each building after a legendary player or an historic event at the Club.

West Ham United Vice-Chairman Karren Brady said: “We opted to reach an agreement with Galliard because they are a local London developer and employer with origins in East London.

“We know they are committed to working closely with the local community and Newham Council on proposals to transform the site into a residential and retail village, which will benefit the local community and East London’s regional economy.”

She said: “The deal demonstrates that we have been true to our word by securing the regeneration of two areas of East London through our move to the Olympic Stadium in 2016.

“We are confident that West Ham United fans will be excited about their vision and the way they plan to respect more than 100 years of West Ham history at Upton Park.”

Galliard will build new homes alongside ground floor retail and leisure facilities, complete with underground parking.

The developer said it would consult with the family of Bobby Moore regarding the proposed development of a central landscaped garden.

Moore’s daughter Roberta said: “I have always believed that there should be some form of permanent West Ham United presence at the Boleyn Ground site after the team leave and I’m really pleased that the centre point of the development is planned to be named in honour of my father.

“Hopefully the new sculptures and buildings being proposed will also help ensure that a lasting legacy to the Club, my father and his team-mates is left at Upton Park.”

The new village, which will have a construction programme of some 30 months, should be completed in late 2018.