Shrewsbury and Atcham Borough Council finally reached an agreement with the other landowner of St Julians Friars on Friday.

Work will start in the summer to build 92 houses and apartments and is expected to finish in 2004.

Borough councillor Peter Nutting said the cost of the redevelopment would be about £15m.

"It will be a very smart development and will replace a derelict and vandalised area of the town," he said.

"We have been working for eight years to try and redevelop this site.

"Half of the land is owned by Greenhouse and the other half is owned by the council but the new agreement means it will be sold to a private developer."