PLANS for the £70million expansion of Southampton's WestQuay centre have been approved.

The city council's planning and rights of way panel has this morning approved outline plans for the Watermark WestQuay project.

The plans, which have been drawn up by developer Hammerson as part of an agreement with the city council, include a luxury cinema, restaurants, bars, leisure and retail at the derelict site next to the WestQuay Shopping Centre.

They form part of the first phase of work, which also includes a plaza at the base of the medieval city walls, and are likely to be built within three years of final planning permission being granted.

That will be followed by a second phase containing a residential tower up to 27 storeys high and containing as many as 260 flats, hotels and a pocket park.

It is estimated the development will create more than 2,000 jobs.

The planning panel approved the application and delegated the power to grant outline permission to the council's planning and development manager.

Hammerson will now come back with an application for full planning permission later this year.