A giant £350 million leisure resort, including a hotel, casino and the world’s largest water park could be built in Newhaven.

Developers, backed by Middle Eastern investors, want to build the complex in the middle of the seaside town. Round Table Entertainments, the company behind the ambitious scheme, said the town could become a “world leader in leisure entertainment”.

It claims the scheme would generate millions of pounds for the local economy and create 500 jobs. A feasibility study will be completed in October with a six-month public consultation beginning in January.

The indoor water park would cover six hectares or ten football pitches which the developer claims would make it by far the largest in the world.

It would feature “anti-gravity water slides” inside a giant building with transparent plastic walls with a hotel and casino as part of the complex.

Lewes District Council said it wanted to boost economic growth and create jobs, but stressed residents would have the final say.

As part of the negotiations the council has made it clear that no development will proceed without full public consultation.

A spokesman for Round Table Entertainments said: “We feel that Newhaven could become a world leader in leisure entertainment and create numerous economic opportunities for local businesses and residents.

“This water park is envisaged to be a truly family destination, providing a variety of rides for both adults and children.

“With a fully covered and controlled atmosphere, it will not cause an abundant amount of noise whilst providing a true architectural landmark.

“Given Newhaven’s seaside heritage, its impressive rail links, and land and people resources, it is perfectly placed to become a world leader in leisure and entertainment.”

The company has already bought a plot of land from Lewes District Council near Robinson Road, including the Lewes Road Recreation Ground.

However, Dominic Howson, European director of Kuwaiti-based investors KEH Developments, claimed there were no immediate plans to build on the park, only on the “scrubland” to the north.

He said: “There are a number of inaccurate rumours circulating. “We have bought the park but we are not planning to build on it for at least ten years.

“The fact is all the key stakeholders are really positive about this because it gives Newhaven a really bright future.”

Lewes District Council has not yet granted any permission for the project and has sold the Robinson Road site to allow the feasibility study to go ahead.

If the study shows it would not be possible to build there, the developer has pledged to return the land to the council.

Lewes MP Norman Baker said the scheme could “fundamentally change the face of the town forever”.

He said: “On one hand it’s welcome that someone wants to invest in Newhaven and I have always seen the town as commercially inviting.

“But on the other hand we need to make sure that the plans are going to be beneficial for the residents.”

Lewes District Council leader James Page said: “We want the public to decide on these proposals and indeed discuss how the investment opportunity could benefit them.

“I feel this is a great opportunity for residents to set out what they would like from a potential £350 million investment in their community.

“I am proud that we have won this opportunity for Newhaven over other possible locations in the region.”

• The leisure resort proposal comes after plans for the multi-million pound regeneration of Newhaven Port were given the go-ahead in May.

The scheme, which would create hundreds of jobs and new homes, is expected to give the town a major boost.

Developers behind the project said the decision was the “right one for Newhaven”.

The plan, known as Eastside, was a joint proposal by developer Avalon, supermarket Asda and housebuilder Barratt Homes.

It will create a supermarket with up to 400 jobs, a pub, 14 commercial units and almost 200 homes on greenfield land behind the Brightwell Industrial Estate.

A rival bid for the redevelopment of the Railway Quarter, which would have led to a Tesco store being built on the port side, was rejected.