The dream of a £350 million canalside village for Bradford city centre took a big step forward today.

Bradford Channel Ltd, the company set up to realise the vision, signalled its intention to press on with the scheme when it submitted an outline planning application to Bradford Council.

The development is the cornerstone of the city's masterplan. The detailed bid draws a picture of futuristic buildings wrapped around a new canal basin featuring offices on barges and waterside pedestrian routes.

There are proposals for 2,600 homes, apartments, shops, cafes, bars, restaurants, a hotel, offices and leisure and health-care facilities on the site near Forster Square.

The plan would take ten years to complete in three phases.

The development company, which is fronted by Shipley-based Magellan Properties, said talks had already begun with the site's existing occupants about relocation, some of it within the development.

The planning application includes a multi-storey car park to serve most of the properties.

The building would be interspersed with towers containing apartments. It would have a central entrance.

The structure would probably be made of crystal-like glass and stainless steel panels.

Pedestrian routes from the site would link into the Broadway shopping development, Forster Square station and Little Germany.

The plans are in line with the vision for the area laid out by international architect Will Alsop in the city's masterplan. He calls the location 'The Channel' and sees it as a new waterside village with a vibrant community.

Magellan Properties chairman Harold Robinson said the plan had been designed in the spirit of the Alsop masterplan and the city's first design guide which has just been published in draft form.

"We have a proven track record of successful and sensitive developments and believe that this high-quality urban village will play a major part in the regeneration of Bradford, " he said.

"The Channel showcase of quality architecture, public spaces and water features will set a standard for others to match."

Much of the main site - bordered by Hamm Strasse, Canal Road, Holdsworth Street and Valley Road - is owned or managed by Bradford Channel Limited.

The developer would build the 15-berth canal and has told the Council it would then be adopted by British Waterways which would own and manage it. There are proposals for a canalside promenade, fountains, bridges and stepping stones. The developers propose small shops like hairdressers, dry cleaners and newsagents for the new village.

The planning application is divided into three phases with the aim of starting work early next year if planning consent is given. The first phase expected to start by the middle of next year if planning consent is given would include 250 homes, offices, restaurants and bars.

Marc Cole, head of regeneration for Bradford Centre Regeneration - the company set up to spearhead the city's rebirth - said: "We welcome the Magellan planning application which represents an important step towards the delivery of the Channel urban village development."

Robinson Architects, part of the Yorkshire-based Robinson Design Group, was commissioned to design The Channel, working with Magellan Properties.

Bradford Council planning manager Dave Preece said the authority had just received the planning application and it was being processed.