An agreement has been signed for the development of a 1.3 million sq ft (120,770sq m) mixed-use project in Harlow, Essex.

Harlow Council signed a deal with international developer Stockland to work on the scheme, which will re-integrate the northern area of the town centre and Market Square quarter with the Harvey Centre and the Water Gardens development to the south.

New restaurants, a hotel and a cinema are among the proposals, which also include a new department store, homes and a bus station.

The development is also intended to work alongside other regeneration projects in the town, including the new Leisurezone sports centre being developed by the Harlow Gateway Project.

Andrew Johnson, leader of the Conservative Group said the council, said: "This is a major boost for Harlow's future and the whole town centre. This announcement contributes to an exciting time for Harlow along with other regeneration projects that are happening.

"This scheme could bring new shopping and leisure experiences to residents and visitors as well as new housing to bring life into the town centre in the evenings."

The East of England Development Agency and Essex County Council are backing the project.

The scheme will be open to public consultation during summer 2009, with a view to a planning application being submitted in 2010. Subject to planning permission, the project is expected to open in phases from late 2012.