Plans for an ambitious £160m redevelopment of the Jewellery Quarter in Birmingham has been granted the go ahead by the city council.

City planners approved the scheme, called St Georges, which is set to create a vibrant new living and working quarter with two hotels, leisure space, offices and around 700 new homes.

The 6.8-acre site is bounded by Icknield Street, Camden Street and Carver Street and incorporating Pope Street and Moreton Street, and will include 1.145sq m (12,230sq ft) of space for restaurants and bars as well as 2,274sq m (24,470sq ft) of retail space.

A £15m, 151-room Ramada Encore hotel will be built on the corner of Icknield Street and Pope Street, while another 100-room budget hotel is also planned for the site.

The scheme's developer, Chord Deeley, has appointed Alfred McAlpine and New World Leisure to develop and operate the hotels as a joint venture.

The masterplan for the scheme has been designed by Urban Initiatives, an urban planning and design practice responsible for many schemes in the UK, including the Greater Ashford Development Framework, Grimsby Renaissance, Ipswich Waterfront, Liverpool Commercial Centre and Paddington Central.

Building work on the site is expected to commence in the summer, and the firt phase will include the Ramada hotel.

The site is due to be completed by 2012.