The ambitious plan designed by Leonard Design Architects comprises 900,000 sq ft of mixed-use accommodation.

This will predominantly by retail and leisure led, but also includes over 200,000 sq ft of residential and office space.

Sheffield City Council has been assessing the best way forward for the retail quarter since ending a partnership with developer Hammerson in 2013.

It plans to part fund the scheme from the New Deal with Government to use tax incremental financing.

Simon Green, Sheffield City Council’s Executive Director – Place said: “This is the right time for Sheffield.

“We sit at the heart of the devolution debate; we have an ambitious plan for growth; and we are delivering a series of enhancements to our city and public spaces through partnerships with universities, commercial real estate, homes and our hospitals.

“In the coming months we will launch the world leading Advanced Manufacturing Innovation District. All routes lead to the need for an improved and vibrant city centre with retail and leisure at its heart.”

Martin McKervey, partner at Nabarro and Sheffield City Region LEP board member added: “This new and exciting opportunity is a further endorsement of the confidence we must all have in the city following the interesting developments in progress such as the £65m Chinese inward investment plan for New Era Square, the new Olympic Legacy Park in the Don Valley and the University of Sheffield’s Factory 2050, which will build a £43m centre of excellence for advanced manufacturing.

“Sheffield is indeed an attractive investment opportunity and we have a platform to build on this.”

Sheffield City Council is now talking to potential strategic development partners to help deliver the new scheme by 2019 and expects to announce a partner this Autumn.