More than 400 homes will be created at the Lewes Road site

The Chichester Diocesan Housing Association (CDHA) has been recommended to transform the derelict Preston Barracks plot.

It was one of four partnerships to put forward plans to Brighton and Hove City Council to develop the site.

More than 400 homes will be created at the site along with new businesses which could generate 1,000 jobs.

'Innovation and design'

Council officers and the South East England Development Agency (SEEDA) picked the association as the preferred design after whittling the applicants down to two.

CDHA beat the design by Urban Catalyst to develop the 2.2 hectare site in Lewes Road.

The plans will create 20,000 sqm of business opportunities with 40% of the 412 homes intended as affordable housing.

Peter Field, from Brighton and Hove Regeneration Partnership, said: "We are extremely fortunate to have two proposals of such a high standard.

A full planning application is due to be submitted in December

"They meet the necessary objectives of innovation and design excellence that this city asks of its developers.

"Both are capable of delivering a flagship mixed-use scheme."

The city council bought the barracks in 2002 which was formally owned by the Ministry of Defence.

It is anticipated that a full planning application for the site will be submitted in December 2004.

Lewes Road is one of the areas in Brighton identified by the council as a site for buildings more than six storeys high.