The extra space will be created by extending the Grafton Centre across the current service yard on the south west corner of the scheme. The city council has already expressed its support for the scheme in principle and the Secretary of State for the Environment, Transport & the Regions, in dismissing proposals for a major shopping development in the city's northern fringe in 1997, recommended that development should be concentrated on existing city centre locations.

But the move represents a climbdown for the Pru, which won planning permission two years ago for an extra 50,000 sq of retail space fronting Burleigh Street. In a statement the company said: 'In Spring 2000 planning consent was granted for a scheme which would have incorporated a number of properties located on Burleigh Street. However due to land assembly issues this scheme is not deliverable within an acceptable time scale. We are therefore submitting a revised application for a scheme on 'land' under our direct control.

Work could start on site in early 2003, subject to planning permission. The construction will take around 14 months, the new extension could be complete by spring 2004. Drivers Jonas is planning consultants, and Lunson Mitchenall is letting agent.