Development of the site should finish in 2007

The consortium includes the Anschutz Entertainment Group (AEG), which wants to turn the Dome in south east London into a 20,000 seat arena for top stars.

Ten thousand homes, schools, health provisions and transport links are planned for the Greenwich site.

Work on the project is expected to start in spring 2005.

A planning agreement for the Greenwich Peninsula was signed on Thursday night by Greenwich Council and the development consortium.

Games bid

Taxpayers have had to pay out more than �30m to maintain the Dome since it closed at the end of 2000.

The government said the costs would start to reduce once work on a music arena began.

The Dome also features in London's bid to host the 2012 Olympic Games.

Greenwich Council leader Councillor Chris Roberts said: "We are building a new community on land that used to be derelict and contaminated.

"We have long held that the Dome has a longer-term legacy, for without it we could not have realised so much of our vision for the area in such a short time."

Ralph Luck of the government regeneration agency English Partnerships, which owns the site, said: "The signing marks the beginning of the final stage of the ultimate regeneration of the Greenwich Peninsula."