Woods Bagot have been chosen to redevelop Adelaide's Central Market Arcade, with a design that will see it integrated with the city's adjacent Central Market itself to create a world-class food and wine destination.

The AU$400m (US$276m, €248m, £210m) project will establish the newly combined 11,000sq m (118,400sq ft) social and commercial precinct with supporting public spaces as the cornerstone of the broader market district.

The amount of retail space for speciality food and drinks will be increased to over 8,000sq m (86,000sq ft) split across two levels.

In addition, a central public hall, biodiverse public rooftop gardens, a childcare centre, education spaces, a hotel, apartments and offices will be added to the district.

The proposed design seeks to draw through the "spirit of the market" – which is being left untouched – into the arcade.

A connection will be created between the two and the arcade's brick arches, which were partly demolished in the 1960s, will be reinstated to create continuity with those of the market building.

Alex Hall, associate principal at Woods Bagot and the project’s design leader, said: "As part of a broader vision to attract the best and brightest people, the city’s intent is to transform the market district into one of Australia’s most recognised lifestyle destinations.

"The Adelaide market dates back to 1869, when a group of local gardeners sold their wares without any structure other than gas lights and a fence. A century and a half on, we’re looking to sensitively create a space that can carry that local entrepreneurial spirit forward."

Work on the mixed-use development is expected to break ground in 2021.