Planners at Salford City Council (SCC) have unanimously approved a multi-million pound scheme to regenerate a 17.4-hectare (43.8-acre) area in the heart of the city centre.

Backed by Central Salford Urban Regeneration Company (CSURC), the project is being led by English City Funds (ECF) and will link sites including the University of Salford,The Crescent, Chapel Street and the Springfields business district. ECF's plans, which have identified a number of zones earmarked for development, include the creation of nearly 400 new hotel bedrooms, 24,000sq m (258,334sq ft) of retail, leisure and entertainment space and the restoration of historic buildings.

A new public square - to be called St John's Place, a commercial quarter, cycle and footpaths and nearly 850 homes are also among the plans, which were submitted to the council in July 2009 after more than two years of consultation. SCC lead member for planning, Derek Antrobus, said: "This is an ambition of local people, local businesses as well as the local council. We are delighted our vision to restore Salford's city centre has been taken a step forward today by the approval of this planning application."

CSURC chief executive Chris Farrow added: "Over the last two years, Central Salford Urban Regeneration Company, in close partnership with our public and private sector partners, local businesses and communities, has worked tirelessly on the planning, design and consultation for the Chapel Street area."