The development will be built to the west of the Ty Europe stand

The club's project, which includes redeveloping Fratton Park itself, is the largest such scheme in the city since Gunwharf Quays retail outlet.

It will create more than 600 jobs and provide more than 500 dwellings.

Planning permission will be sought by the end of the year. It is hoped the three-year construction project will begin in the Spring 2004.

The houses will be built on the site of the existing car park to the west of the Ty Europe stand.

The club said the revenue generated by the development would go towards the construction of the new stadium.