The riverside site has stood empty for five years

The riverside site, owned by Tesco, has stood derelict since the brewery closed five years ago.

On Thursday the company submitted a planning application including a store, a 90-room hotel and 480 apartments.

However, the city's regeneration company, Arc, wants to buy the site for its own �280m development scheme.

In the planning application, Tesco says the site will be known as The Vaux to commemorate the brewery which closed in 1999 ending more than 150 years of brewing history in the city.

The plans are for a mix of retail, leisure and residential buildings. Riverside housing will be provided in 480 apartments and penthouses along with a 90-room hotel.

'Once in a lifetime'

The plans include building a tunnel for traffic under the existing road and a new pedestrian link between the city centre and the River Wear. Developers hope the work can be completed by 2008.

Tesco spokesman Shaun Edgeley said: "It will help Sunderland compete with some of the other bigger city centres in terms of retail.

"We believe additional retail will help Sunderland city centre to compete, and it will be bringing really stylish riverside accommodation into the city and bringing people back into the city."

Sunderland City Council said it could not comment at this stage on the merits of the proposed scheme.

But council leader Bob Symonds said: "The development of the Vaux site represents a once in a lifetime opportunity for Sunderland.

"The council is very keen to see progress on the site and to see the right kind of development for such a landmark site.

"We welcome the submission of the planning application as it starts the process of removing the uncertainty which surrounds the future of this very important site."