It was lift-off today after years of frustration when an historic deal was signed to regenerate landmark Manningham Mills.

The restoration work on the giant South Mill will cost £18 million, is expected to create more than 1,300 jobs, and will become a symbol of the city's revitalisation.

Award-winning developer Urban Splash already has a waiting list for the 370 apartments and penthouses which will be developed in the decaying Grade II* listed building.

Offices, studios and space for businesses and the community have also been included in the redevelopment of what was once, in textile giant Lister's heyday, the world's largest producer of silks and velvets.

Today's deal means more than £6 million of public funds - made up of

£4 million from Government regeneration agency Yorkshire Forward and

£2 million from Bradford Council - will be invested in the project.

Under the guidance of Britain's biggest conservation organisation English Heritage - which is also contributing £300,000 - the restoration will begin in a few weeks time.

Manchester-based Urban Splash will finance the rest of the scheme.

The 700,000 sq ft building, with its distinctive 225ft chimney, has been empty and deteriorating for years while every bid to redevelop it has collapsed.

It is the largest listed building in Britain on English Heritage's register of "at risk" properties.

Urban Splash, with an impressive track record of regenerating historic buildings, bought it two years ago.

But the scheme was held up because of a financial shortfall which Yorkshire Forward could not provide to a private company under its funding rules. The complicated deal has now been made possible because the mill has been leased to the Council while the public works are carried out and will then be returned to the developer.

Yorkshire Forward chairman Graham Hall said: "This terrific building symbolises all that made Yorkshire the world leader during the industrial revolution - harnessing the power of steam, technical innovation and the skills of local people to produce and export goods around the globe.

"Its rebirth now continues that tradition by harnessing world class architecture to meet the needs of the 21st century.

"The restoration of the building - which critics said was not 'doable' - will bring new wealth into the Manningham area, creating a new vibrancy in this area of the city.

"We have had to work hard within the rules of public investment in property and we are set to make this development happen. It has taken hard work and vision from all involved. This is a proud day for Bradford and for everybody who has worked so hard to secure this outcome."

Bill Maynard, pictured, director of Urban Splash, said: "We are all very, very excited. We have been working on it for the past two years.

"There is incredible potential in the mills and Bradford and we see this scheme as a beacon.

"We are looking forward to the huge transformation and it has come about because of real team efforts. It is going to be absolutely fantastic."

Bradford Council's executive member for regeneration Councillor Simon Cooke said: "This is wonderful news.

"The signing of this agreement paves the way for this major scheme which will bring jobs, investment and regeneration to Manningham and the wider district. A lot of people deserve a lot of credit. The right solution has been found through patience and confidence."

John Hinchliffe, English Heritage's acting regional director for Yorkshire, said: "We are delighted that our conservation advice and grant aid has helped to provide a new future for this iconic site."

Bradford West Labour MP Marsha Singh said: "I am delighted the scheme has come to fruition after so many false starts. I think it will be seen as a signal that Bradford is a city which is on the up."

Sandy Needham, chief executive of Bradford Chamber of Commerce, said she believed the scheme would bring benefits to residents and businesses across the district.

"This development could be an important catalyst to Bradford."

David Cubitt, chairman of Manningham Means Business said : "I think it is a bit of a spring board and if the whole community can embrace the idea it can start us off in the right direction for the first time in a long time."

Naweed Hussain, chairman of Oak Lane Shopkeepers Partnership, said: "We hope this will bring prosperity to the local economy and the area."