The Tropicana has been derelict for years

It means developers Henry Boot can now submit a planning application for the Lifestation @ Tropicana leisure facility by the end of the summer.

If all goes to plan the 90-bed hotel and indoor pool could be open by 2010.

A council spokesman said the agreement was an important step forward for the Tropicana, the seafront and Weston.

Fewer visitors

Council leader Alan Hockridge said: "It has taken some time to get to this point but I am confident Henry Boot will deliver a high-quality scheme and I am looking forward to taking a dip in the new leisure pool when it opens."

Other features of the development including cinemas, restaurants, bars and shops would open shortly after.

A spokesman for Henry Boot said it would be running an information programme to keep the community up-to-date with the project.

"We understand how important this project is to Weston and want to make sure the local community have the opportunity to contribute to this important development."

There has been a pool on the seafront at Weston since the 1930s, but declining visitor numbers in the 1990s saw the council vote to close it.