Stirling Council has approved plans for the next phase of the city's £110m Forthside regeneration project.

A new city square, a hotel development and a restaurant are part of proposals to redevelop the 40-acre site on the banks of the Forth river. The first phase of the project saw the opening of a new £2.5m, eight-screen, 1,100-seat Vue cinema and two restaurants in January, as well as the construction of a £6m pedestrian bridge to link the development with Stirling city centre, which was designed by the same team behind Gateshead's Millennium Bridge.

Plans approved by Stirling Council's planning panel include a six-storey Thistle hotel with 151 bedrooms and a conference wing and the refurbishment and extension of a former engine shed which will incorporate a new restaurant and pub. A new city square with central lawn and water features is also set to be created. Chair of the council's planning panel, Alisdair MacPherson, said: "This next phase is an important stepping stone in meeting the aspirations of what is an exciting era for our city.

"We must ensure that the development is attractive and functional; a public area that will become a social meeting and greeting place for local residents and visitors to enjoy." The engine shed work will be carried out by Stirling Development Agency (SDA), a joint venture between the council and property group Valad, as well as a new office development.

Andy Richardson, development director of Valad, and director of SDA, said: "These are just two of a number of developments planned by the SDA both within the city centre and surrounding areas, which will help encourage inward investment in the region and facilitate economic growth."