A £200 million shopping development set to ignite Bradford's regeneration has been given the go-ahead by the Government.

The Broadway Centre - which developers hope will lead the way to the city becoming one of the country's top places to shop - will be built on a 16-acre site in place of 1960s shops and offices in Broadway and Petergate.

The ambitious plans hinged on the result of a ten day public inquiry held in January over the need to issue compulsory purchase orders to clear the site and carry out major road changes.

Bradford Council leader Margaret Eaton said she was delighted that the First Secretary John Prescott and Transport Secretary Alistair Darling had approved the plans which would spearhead the city's biggest building project in 40 years.

"This is a major step forward in delivering the Broadway development and renewing Bradford city centre," she said.

The Broadway Centre is promised to be a state-of-the-art retail complex which will compliment Bradford's historic city centre listed buildings - in sharp contrast to the existing 1960s concrete-built premises which Mr Prescott concluded made Bradford an unattractive place to shop.

It will feature more than 60 shops, two public squares, and 1,400 parking spaces.

Debenhams and British Home Stores have already signed up for the centre, which is expected to be open by Christmas 2005. Work is due to begin next January.

Developer Richard Weatherhead, of the Forster Square Development Partnership, said it was the first stage in transforming Bradford into one of the top shopping centres in the UK. He said: "This is fantastic news for the city. We see it as the key to the regeneration of the whole city centre."

Jeff Frankel, chairman of the Bradford Retail Action Group, added: "This is a massive boost for the commercial and retail heart of Bradford. We have heard talk of a revival before but now it is really happening."

A number of businesses, including the owners of buildings in Broadway and Petergate, had objected to the development at the public inquiry.

Argument against it ranged from worries at the scale of the project to fears it would detract from the vitality and viability of other facilities in the city centre.

But Mr Prescott sided with developers after finding the city centre was in decline and that there was "compelling" need for the development.

His inspector K Barton, who oversaw the inquiry, said he believed 1960s concrete buildings had created a perception of Bradford as an "unattractive" run-down city and were out of character with the city's older sandstone buildings.

In addition to the compulsory purchase orders, road closure plans were also confirmed.

This will allow Petergate and parts of other roads to be shut down. Cheapside will also be closed at Forster Square and replaced with a new road at the side of the Midland Hotel linking it to Canal Road.

Councillor Simon Cooke, the Council's executive member for the economy, said steps to introduce and advertise compulsory purchase and road closure orders would begin immediately.

He said: "We have sent letters to the occupiers of the properties within the proposed development site to explain the next stages as part our commitment to keeping everyone fully informed."