EXCITING plans for a £37million extension to the Fishergate shopping centre were given the go ahead by Preston councillors this week.

The extension was put on hold last month after fears it could increase traffic congestion in the city.

But at a planning meeting on Monday, city councillors were satisfied that measures, including a £500,000 contribution towards public transport and highways improvements from the developer, and early warning parking signs could ease traffic problems.

The plans which will boost jobs in the city, will also create 187,000 sq ft of additional shopping space, an increase of 40 per cent, and an extra 200 car parking spaces.

Warner Estates, which manages the centre, expects to start building the extension and a multi-storey car park soon, with work due to be complete in 2007.

Deborah Ainsworth Lord, of Debenhams in the centre, said: "Fishergate is already a very fashionable shopping centre attracting a wide range of shoppers.

"We would be delighted to see an even bigger presence of fashion retailers to add to the already thriving offering and we look forward to an exciting future at the centre."

Amanda Holdstock, from neighbouring TK Maxx, added: "Additional space is required to provide a better retail experience for our shoppers.

"We are looking forward to welcoming other retailers to the centre and together we will be providing a fantastic retail destination for the North West."

A spokesman for Warner Estates said discussions had started to bring in new retailers although currently it is not known how many stores will be coming or their size.

Richard Moore, Warner Estate property director, added: "The further development of Fishergate is excellent news for Preston and this demonstrates our commitment to the long term future of the city."