Council has approved plans by local developer Silverlink Holdings for its proposed Stephenson Quarter mixed-use development.

The £200m scheme will comprise a new four-star Crown Plaza hotel, another boutique hotel, 155 flats, art gallery space, a new post office sorting facility, shops, offices, restaurants and a 300-space multi-storey car park on a 10 acre site to the south of Newcastle Central Station.

A total of eight new buildings are proposed, in addition to redeveloping five listed buildings in the area, including the offices at 20 South Street where Robert Stephenson’s engineering works gave birth to the railway age.

The application has undergone extensive development and consultation since 2004 and the six-year project is expected to get under way in summer 2009.

David Slater, Newcastle City Council’s executive director of environment and regeneration, said: ‘This is one of the biggest and most detailed applications we have ever received. It will revive a neglected area of the city to bring jobs, homes, hotels and history to life. We are very excited that such a quality development has been approved even in tough times.’