Moves are being made to appoint a new developer to complete a "key" regeneration project which features more than 500 homes.

Work on the £100 million Chapel Riverside scheme north of the Itchen Bridge was halted after Inland Homes went into administration last year.

Plans to rescue the prestigious project are due to be discussed by the city council's ruling cabinet on June 25.

Members are being recommended to authorise the transfer of the existing development agreement to another contractor - a process known as "novation".

It comes after it emerged that a potential buyer has been found for the nearby Meridian Waterside scheme, which was also being built by Inland Homes.

A CGI of the Chapel Riverside scheme, where work stopped after Inland Homes went into administrationA CGI of the Chapel Riverside scheme, where work stopped after Inland Homes went into administration (Image: Supplied)

Chapel Riverside involves an 8.9-acre site that was used as the council's waste and recycling centre before the facility was moved to First Avenue in Millbrook.

READ MORE: Plan to transform empty quayside area by building bustling £100m development 

A report to the cabinet says: "As the freehold landowner, the council aims to support the re-commencement of the development as soon as possible in line with its vision for the city's growth.

"Following a marketing process conducted by the Administrators, other developers have expressed interest in completing the unfinished components of the scheme.

"Allowing a novation of the [development] agreement would enable a new developer to take forward the development according to the terms outlined in the existing agreement between the council and Inland Homes."

The Chapel Riverside site before work started on a major regeneration schemeThe Chapel Riverside site before work started on a major regeneration scheme (Image: Supplied)

Bargate ward councillor and Cabinet Member for Economic Development at Southampton City Council, Sarah Bogle, said she was "very pleased to see the development move forward".

She added: “The decision on Tuesday will be a novation planning agreement, meaning we can get the scheme moving as quickly as possible – by bringing in a new developer.

“I think this is such positive news for Bargate and for the city at large. The development will open up an entirely new waterfront for the city.

“This is a really exciting development and should stop any further delays to the project. After Tuesday's meeting we will be allowed to move forward much more quickly.”

The report says transferring the agreement "represents the quickest path toward securing a new developer".

"It adds: "This approach is also beneficial as it ensures a comprehensive exchange of information between all involved parties.

"The process requires the Administrators to source and appoint a new contractor. The council must be satisfied that they have undertaken the relevant process to comply with the regulations, but must not play a part in the selection of the new contractor."

READ MORE: Meridian Waterside scheme could finally be completed after potential buyer found

The report describes the five-phase scheme as a key regeneration project for the city.

It adds: "Phases 1-3 are substantially complete - this includes 204 flats, two small commercial units, a new river wall, and riverside walkway.

"Planning permission for phases 4 and 5 includes a further 316 flats, 5,418sq.m of commercial floorspace, the remainder of the walkway and a new public square.

"A confidential marketing exercise was undertaken by the Administrators, following consultation with council officers.

"This process has recently concluded and demonstrates there is interest from other developers in continuing the development as per the terms of the original Development Agreement."