COUNCIL bosses have vowed to "reclaim the streets" in an ambitious multi-million pound plan to regenerate Preston's town centre.

Cross-party members have lent their support to a five-year scheme which will see Preston challenge to be the North West's third largest retail centre behind Manchester and Liverpool.

The scheme, in partnership with Grosvenor Estates, will see £600 million invested in the town which could see building work start as early as 2004.

Two large department stores, leisure complexes and numerous office developments, will be the cornerstone of the plan which could see up to 2,000 jobs being created as well as a number of town centre flats and houses.

Ian Hall, leader of Preston Borough Council, said: "We are pleased to be moving forward with the project.

"We have consulted widely to complete the initial study. With our development partners Grosvenor we now want to move ahead with our work on the scheme.

"It's a great opportunity for Preston to secure major investment in retail, leisure, office and other mixed uses so the town can become the third largest centre in the North West."

Councillor Ken Hudson, leader of Preston's Conservative group, added: "It is clear that the development scheme is the best way forward for the town.

"The multi-million pound scheme will rejuvenate the town centre with improved shopping and leisure facilities.

"There is still a long way to go and a lot of hard work that has to be done but we are confident that we can make the redevelopment happen."

Rodney Holmes, manager for Grosvenor, said: "The findings of the study clearly back our initial view that Preston is well suited for redevelopment and major new investment.

"We can now move forward and continue to work with Preston Borough Council to draw up more detailed proposals. It's a very exciting time for the town."