NEW homes could be built on the former Sainsburys supermarket site.

Midlands-based development company, Richardsons, and partners MCO Developments, have already been granted planning permission for a two-storey leisure and retail complex, with the potential to include a swimming pool.

But a new twist emerged this week when it was revealed the companies are said to be "on the verge" of submitting a fresh application which will include plans for residential accommodation.

At a meeting of Prestwich Business Forum this week, planning officer Steve Lever said: "We have been in discussions with Richardsons over the last few months and they have been talking about a mixed retail and residential idea. I understand that a fresh application is to come in soon. They gave the impression they were on the verge of submitting the application so I would expect it to be within the next couple of weeks."

Mr Lever said the developers had been unable to attract a leisure operator, particularly because of the health and fitness centre being built on the Elms Precinct in Whitefield.

The news comes just weeks after the companies admitted they had only just begun to market the site after a delay.

They claimed plans had been put on hold until Marks and Spencer "made a commitment" to their neighbouring development, on the former Vauxhall Grimshaw's Dealership site in Fairfax Road.

When contacted, Simon Miller, of MCO Developments, said it was not definite another application would be submitted to Bury Council although he added: "We are always looking at reviewing it."

Mr Miller added: "We are still in discussions with leisure operators although with a new Total Fitness centre up the road there is not sufficient demand for another health and fitness club. If we think there is an alternative scheme that will come to fruition quickly then we will consider it."

He did not rule out the possibility of replacing the old supermarket with residential accommodation but said, while they were "driven by market forces", the idea of creating a leisure complex was "not totally abandoned".

However, Mr Miller said that whatever happened with the site it would still contain shopping facilities.