Plans to regenerate the centre of Penrith, Cumbria, have taken a step forward after Eden District Council (EDC) secured an agreement with Sainsbury's.

A new supermarket, bars and a public square form part of the Penrith New Squares development, which ran into delays when the scheme's original Australian backers pulled out last year. It is hoped work can restart by the end of the year after the agreement was finalised, with Sainsbury's due to submit its planning application by the end of August.

The planned superstore element is now due to be completed within two years, while the Common Garden Square part of the development is expected to be complete within five years. EDC leader Gordon Nicolson said: "While there is a longer timescale to the scheme in the current economic climate, this is a more realistic approach and one that is being followed across the whole country for schemes of this type.

"This agreement means that Penrith New Squares will provide a boost to the regeneration of Penrith and will contribute to improving the viability of the town centre."