This cash allows Coventry City Council the go-ahead with selecting a developer to deliver the long-awaited £300m City Centre South scheme.

Plans to build a major retail, residential and leisure scheme were first unveiled five years ago.

An anchor store and cinema are also planned for a complex set to transform the area around Bull Yard, Shelton Square and Market Way.

Cllr George Duggins, leader of Coventry City Council added: “I’m delighted that the combined authority has approved £98.8 million investment for the redevelopment of our city centre.

“We’ve got ambitious and exciting plans for City Centre South, which will include new shops, a cinema, homes and a new car park that will transform the area around Bull Yard, Shelton Square and Market Way.

“It’s no less than Coventry people deserve and a wonderful early Christmas present for the city.

“Coventry people have waited too long for improvements to the city centre. But this cash is a real boost and will mean we can crack on and select a developer.

“We said we would make sure that our residents felt the benefits of our membership of the Combined Authority and this is the first cash boost, with more to come.”