The 31-acre site is directly opposite Ocean Village

The Vosper Thornycroft shipyards at Woolston are to be developed with a mixture of housing and industry over the next 10 years.

The 31 acre site has been purchased by the Government-backed South East England Development Agency (SEEDA).

The site stretches hundreds of yards along the River Itchen, opposite Southampton's Ocean Village Marina.

The VT Group, formerly Vosper Thornycroft, is due to move out within a year to their new site at Portchester, Portsmouth.

The development agency say they will focus on generating employment through new businesses and housing, and they will discuss more detailed plans with the city council.

SEEDA have paid half the money up front, with the rest being phased over the next four years while the site is developed.