HOPES are high that the first phase of a multi-million pound extension to a shopping centre will be completed by the end of the year.

Plans for the redevelopment of Newton Aycliffe town centre, in County Durham, had stalled after a dispute between the owners of the complex and developers of the scheme.

But by splitting the plan into two phases, Sedgefield Borough Council officials hoped they would be able to proceed with the long awaited development.

Phase one of the £25m scheme includes the building of a Tesco supermarket, 20 other retail outlets, the demolition and replacement of the youth centre, and a new urban park.

Planning permission was subject to the signing of two agreements, one for the provision of a town park and the other for the integration of the new development with the existing town centre.

Councillor Terry Hogan, chairman of the Newton Aycliffe Town Centre Forum, said: "There will then follow a statutory judicial review period, after which the developer, CTP Limited, and Tesco will be able to start on phase one of the redevelopment.

"Both Tesco and CTP are extremely anxious to start on site as soon as possible and it is the intention that Tesco will be open for business before Christmas 2003.

"What has always up to now been a dream will shortly become a reality."

Phase two includes the demolition of part of the town centre to make way for a library, health centre and elderly people's drop-in centre, as well as more retail outlets.