CIVIC leaders in Southampton have paved the way for an unsightly patch of desolate wasteland in the city centre to be transformed into a £150m development.

Councillors agreed last night to sell the land to the owners of neighbouring WestQuay shopping centre in a move to revive Southampton's retail ranking.

Hammerson's proposals for the plot, known as West Quay Three, include shops, cafes, restaurants and a four-star 120-bed hotel.

There will also be a piazza with various features and lighting to illuminate the historic city walls, a "pocket park", a cinema and a block of 200 apartments up to 27 storeys high.

However, the plan marks the end of hopes of an ice rink or arena for the site, between The Quays Swimming and Diving Complex and WestQuay shopping centre.

Southampton and Fareham Chamber of Commerce has welcomed the development as a much-needed boost to business and employment in the city.