An international arena is to be built on the derelict Black Rock site

The project will be a key part of the city council's grand design for the seafront.

Councillors had to choose between two proposals, but decided the arena would bring more people and more money to the city of Brighton and Hove than the rival bid for a luxury hotel and spa.

The Black Rock site - two acres of wasteland on the edge of Brighton - has stood derelict since 1978, when a swimming pool popular during the 1950s and 1960s was demolished.

The rejected bid would have included a 150-room five star hotel with a spa and a bio-dome. There would have been room for conferences and it would have created 225 jobs.

But instead the council went for a project that will include a rink open to the public.

The arena, seating 11,000 people, could also be used for concerts, sport and conferences.

Flats and shops will also be built on the site.

But the residents of Kemptown, which overlooks Black Rock, are concerned the chosen development will block their view of the sea.

Derek Granger, of the Kemptown Society, said he feared it would be "another white elephant" for Brighton.

Councillor Sue John, who chaired the meeting of Brighton and Hove City Council, said it was believed the arena would be good for the local economy, bringing up to two million more visitors into the city each year.

"It's going to be good for local people and create hundreds of jobs too," she added.

It is expected the new arena will open in 2007.