The scheme will involve knocking down at least a third of the existing shopping area and replacing it with more shops, flats and offices.

The city council gave the redevelopment outline planning approval last month despite last-minute objections from people living nearby.

Now the Government Office for the South West (GOSW) has decided not to "call in" the application - which means there will be no public inquiry.

Business welcome

The new-look precinct will feature a flagship department store surrounded by 15 other large stores and more than 100 shops.

A hotel, leisure facilities, 260 flats and a 2,650-space car park are also planned.

Consultations will now be held on the details.

Bristol Civic Society had hoped for a public inquiry because of concerns about traffic and impact on the environment.

Business leaders have welcomed the GOSW decision not to intervene as they are keen for regeneration to proceed as soon as possible.