Plans for the regeneration of Gloucester city centre have been handed a boost after receiving £11.2m from the South West Regional Development Agency (SWRDA).

The Economic Linkages project, designed to improve public areas and streets between the city centre and a £400m Gloucester Quays retail development, is in line to receive £7m as part of the funding package. Gloucester Heritage Urban Regeneration Company and Gloucestershire County Council (GCC) have worked alongside SWRDA on the Economic Linkages scheme for the past three years.

It is hoped that the funding package, of which the remaining £4.2m will go towards the completion of the Gloucester Docks scheme, will help the city to fulfil its economic potential. Work is expected to be carried out in two stages - SWRDA will lead the improvements to Gloucester Docks, which is expected to get underway in November and take up to seven months to complete.

Meanwhile, GCC will upgrade the Kimbrose Triangle/Southgate Street section using agency and council funding. Work will start in early 2010 and is due for completion by the end of 2010. Ian Knight, SWRDA area director, said: "Attractive, well-lit streets will encourage people to wander between the two areas, spending more time and money in the city. Turning these streets from a run-down, little-visited area into a vibrant pedestrian thoroughfare will also bring new businesses into the area.

"The fact that this project has made it through a tough process following substantial budget cuts at the RDA, shows the economic significance of Gloucester's docks and city centre."