A massive regeneration scheme for one of Brighton's most run-down areas has been unveiled.

Developer St James's Investments has revealed plans to create a "new London Road" which could include a Tesco supermarket, department store, offices, leisure facilities and new homes.

The area proposed for development stretches from Preston Circus along London Road's shop fronts and down New England Street to just north of St Bartholomew's Church.

London-based St James's Investments has been acquiring land across the area, including Circus Parade and Vantage Point, New England Street, which was bought for £9 million in March 2006, according to Land Registry documents.

The firm, which has worked on a number of Tesco developments, has identified a string of other plots which could be purchased if negotiations with Brighton and Hove City Council are successful.

The former Co-op department store in London Road has been earmarked for a Tesco superstore which would be the commercial centrepiece of the development.

The supermarket would be in competition with the new Sainsbury's, Somerfield and the proposed Aldi in the area.

Council-owned properties such as New England House in New England Road, a hub for start-up companies, and the London Road multi-storey car park could also form part of the project.

Revamped smaller shops, new offices, homes and leisure facilities, which could be anything from a cinema, bowling alley or swimming pool, are also proposed.

The developer has said that sufficient parking will be needed to make the area financially viable.

The council has already identified London Road car park for improvement.

James Hepburn, of St James's Investments, said: "We believe the size and nature of the site provides a great opportunity for the local community, commerce, government and developers to come together to create a truly sustainable exemplar development.

"The next step will be to develop proposed plans for the area by working closely with the council and by creating an honest and open public consultation which helps guide the proposals for the area so that it becomes a destination which Brighton residents and visitors like and use."

Forum for the Future, a sustainable development charity, will be part of the project.

St James's Investments has worked on a string of Tesco proposals in recent years including major development plans in London, Kent and Oxfordshire The firm also played a central part in securing a new Tesco in Hailsham.

A supermarket is being put up on the site of White House Primary School in North Street in the town.

In exchange the school is being rebuilt on a new site north of Marshfoot Lane in Hailsham which St James's Investments help to secure.

Tesco is also paying for the cost of upgrading the nearby Marshlands Primary School.

A spokeswoman for the development said: "It is likely that a Tesco could be an anchor to replace the redundant Co-op department store on London Road, but St James's Investments will not take a decision on this until it has fully consulted the local community and developed the best possible scheme for the area.

"St James's Investments is a very sensitive developer and dedicates a lot of resource to understanding and working with the local communities in which it works."

Brian Oxley, the leader of Brighton and Hove City Council, said: "The area does need regeneration.

"There are a number of issues we will be looking at and the major projects committee must consider what is best."

He added that while New England House needed some work it was important to protect the enterprising businesses in the building.

Keith Taylor, a councillor for the area, said: "Clearly London Road is in serious need of investment to make it once more a thriving town centre for the local population.

"As ward councillor I will be making the case for the best deal for the community but we do not need another supermarket in London Road.

"We can make more imaginative use of that site."

A report on the project will be discussed by the council's major projects committee on February 4.

A website and public information line will go live in April or May and a public exhibition held.