A £2.7 MILLION scheme to revitalise shopping in Lancaster was unveiled this week.
The plans would see a flagship two-storey Next move into St Nicholas Arcades next year.
Two other large new units would also be developed as part of the proposals.
Rockspring, which owns St Nicholas Arcades, believe the scheme will address the
lack of large retail units in the city centre as well as helping to prevent loss of trade to other towns.
European director Rod Mordey said: "We are really excited by the scheme. We think this will help to revitalise this part of the centre."
Centre manager Jerry North added: "There's no doubt that the retail offer in Lancaster at the moment is weaker than we would like it to be and this allows us to deal with that.
"Next have had a longstanding requirement in Lancaster for a better fascia and we won't have any difficulties with the other units we are creating because there's interest out there for units of that scale which we haven't been able to provide for before."
Next have agreed to take the largest unit in the new development - a shop almost three times the size of their current store in Cheapside.
The store would incorporate women's and children's clothing on the ground floor, with menswear and homeware above.
Next estates manager Adrian Trotter said: "We have the best location in Lancaster but we have physically outgrown the building and we see this as an opportunity to get the space we have been looking for for years.
"We are looking forward to having the space to present our product properly."
As part of the plans, the pedestrian entrance to the centre from Great John Street would be closed off, with an improved access point from Church Street.
A new walkway would also replace Perpignan Way at the back of the centre, and current stores including Evans, Hallmark and Rastelli's cafe would be relocated.
Ann Morris, manager of Lancaster District Chamber of Commerce, welcomes the scheme, which she believes will help bring the centre up to date with the demands of modern retailing.
"The investment helps to put a halt to some of the uncertainty which has held back retail development in the city as a result of lack of progress on the Centros site," she said.
Rockspring hope to submit a planning application to the city council in August, with a decision likely to be made by November.
Building work would then begin in January 2011, to be completed by September 2011.
Existing shops will continue to trade.
The plans are currently on show in the centre's former Adam's store between 10am and 5pm until today, Friday.
