The new plans spell the end for Quiggins Shopping Centre

The �750m development, which includes a new complex of shops and hotels based around Hanover Street, Paradise Street and School Lane, was approved in May.

But the Merseyside Police Authority raised concerns over the position of a new bus station next to Chavasse Park.

The plans, which include moving the station to Canning Place, were approved on Tuesday.

Autumn start

The new project is the brainchild of the Duke of Westminster's property company, Grosvenor.

Alternative shopping centre, Quiggins, which is on School Lane, would be closed under a compulsory purchase order, affecting 45 businesses.

Following the approval the plans will go before Deputy Prime Minister John Prescott for his consideration.

Work on the project is expected to start this autumn, with completion by 2007, the city's 800th birthday.

Backers say it will create 4,000 permanent jobs.