The proposal includes a range of housing, including apartments

Banks Developments wants to build up to 5,000 new homes, along with schools and sports facilities in Cardenden. The aim is to create a "zero-carbon" community.

Critics have described it as an example of "greenwashing" to push a housing development in through the back door.

Detailed proposals of the scheme will be shown to MSPs at a special launch in My Dynamic Earth in Edinburgh.

'Set new standards'

The company is hoping the Cardenden proposal could act as a blueprint for building sustainable communities in Scotland.

The houses would be a mix of terraced, semi-detached, detached and apartments. A total of 1,250 would be designated as "affordable homes", according to the developer.

Banks' managing director Colin Anderson said: "The proposals we are putting forward for Cardenden will set new standards in the delivery of zero carbon developments in Scotland.

Planners have met representatives of the developer ... it does not comply with Fife Council's planning policies Robin Presswood Fife Council

"Sustainable, high-quality communities such as this will make a significant contribution to creating the prosperous and low-carbon Scottish economy that is the country's stated future ambition."

Developers displayed their plans to the local community in October 2007.

It included proposals to redevelop the existing town centre.

However, no formal application has been submitted to Fife Council and the scheme does not fit in with the authority's idea of where new houses should be built.

Business and Strategy Manager with Fife Council, Robin Presswood, said: "Council planners have met representatives of the developer promoting the major development at Cardenden and have advised that, at this time, it does not comply with Fife Council's planning policies.

"The council is happy to receive submissions from developers which can help shape future policies."

Eco-town protests

Bids have been submitted for up to 10 eco-town developments in England and a shortlist is expected to be announced shortly.

A series of protests has been organised by residents at some of the proposed developments because of concern over the impact on existing communities.

No such plans have been unveiled north of the border, however, the Scottish Government is consulting over building sustainable communities.

A spokeswoman said: "Our housing discussion paper, Firm Foundations, called for views on the introduction of a Scottish Sustainable Communities Initiative (SSCI) to bring forward proposals for sustainable new settlements.

"These proposals should be visionary, ambitious and innovative, serving as exemplars of 21st Century low-impact development.