The company has submitted a planning application to Sunderland Council to build a new distribution centre at the existing Asda site in Washington.

More than �40m of private funding would be invested in the centre, which would be used to distribute the firm's George branded clothing.

The depot would cover 380,000 sq ft, according to Asda.

'Major investors'

Cllr Dave Allan from Sunderland Council said: "The company already employs 1,000 people in Sunderland.

"We are extremely pleased Asda has selected the city as its favoured location to create potential for a further 700 new jobs over an 18-month period.

"The city has established a reputation for attracting major investors and this development highlights Asda's confidence in Sunderland."

The news brings the total of new jobs announced in the city to almost 1,000 in the past week, coming just days after Nissan announced the creation of 200 new jobs at its Washington factory.