PROPOSALS for a £150m overhaul of the heart of Newcastle's city centre shopping district have been unveiled.

Capital Shopping Centres (CSC) plans to expand and redevelop its Eldon Square complex, in partnership with Newcastle City Council and the Shell Pensions Trust.

More than 1,000 retail jobs could be created and a further 2,000 workers employed during the four-year construction project.

The proposals include a department store, bus station and a mall, along with revitalising Old Eldon Square and the Greenmarket.

City council leader, Councillor Tony Flynn said: "The prosperity of Newcastle is dependent upon large scale investment if it is to remain competitive.

"We need to build on our strengths, attract further investment and support retail diversity. These proposals are for a substantial investment in the city and its regional economy."

The move to redevelop the Greenmarket has angered some traders.

The new-look market will be smaller, with 25 stalls instead of 62, and some are concerned they could go out of business.

But Coun Flynn yesterday promised they would all be offered new pitches, possibly in the Grainger Market nextdoor.

The project will provide an extra 325,000sq ft of retail space, divided between a department store and 30 shop units.

John Abel, managing director of CSC, said: "This will enable us to respond to the strong demand from retailers for these large-format stores and thus maintain Eldon Square's retail offer as one of the best in the country."

A bus station would be built facing on to Prudhoe Street, with a glass fronted waiting area. The present station would be replaced by a mall. The scheme is subject to a bid for an £11m government transport grant.

Following a public consultation programme, a planning application will be made in September.

Construction work could start in Spring 2005 and the development would be completed in phases between 2006 and 2009.