A MAJOR new urban village project is set to breathe life into one of Southampton's oldest communities.

The so-called Chapel area of the city all but disappeared following a major slum clearance programme in Southampton.

But now the old name could be revived with a £25 million scheme to build 500 homes, establish 120 small businesses in two enterprise centres and provide sporting and leisure facilities in an environmentally-friendly setting.

An agreement between the city council and Southampton City College means a large parcel of land will be made available for the development that nestles on the edge of the St Mary's regeneration area.

The site encompasses City College's Deanery buildings and the Anderson Road lorry park as well as adjoining land bounded by Albert Road North - and represents one of the most major developments the city has seen in many years.

The pressure is on to get developers on board and working on site so the scheme can qualify for regeneration cash within a two- year deadline.

While the nearby Bellway scheme in St Mary Street has attracted Single Regeneration Budget (SRB) funding worth a whopping £7 million, the Chapel project will only need a fraction of that sum to become a reality.

SRB funding will pay for added extras such as a new access bridge across the railway line and cycle ways - estimates are that the draw on regeneration cash will amount to approximately £1 million.

Chairman of the regeneration board councillor Paul Jenks said: "It is not often you get the chance to develop a site of this size.

"There are real opportunities for a high- quality development and we have had a lot of interest already from companies wanting to be involved in the scheme."

Mr Jenks said he would be pushing for quality designs for the mixture of shared ownership, rented and properties for sale planned for the site.

"We will be looking for European technology such as high levels of insulation and designs that maximise sun light as well as more use of roof space for living and movable walls so people don't have to move out when their family grows," he said.

While one of the enterprise centres will concentrate more on hi-tech IT businesses, the other is set to be a media enterprise centre with units that provide living accommodation on a mezzanine floor above the work station.

Due to the relatively high density of buildings on the site, there will also need to create swathes of green and the proposals call for a linear park - a wedge of open space - as well as play areas and a new regional gymnastics complex.

"The Chapel area consisted of very poor quality housing, and what the Luftwaffe did not destroy during the Second World War, general dereliction did," added Mr Jenks.