The Assembly recognises the project's huge importance not just to Wrexham, but to north Wales as a whole

Economic Development Minister Mike German

The clearance will allow the site to be developed for housing and business premises, which will accommodate between 750 and 1,000 new jobs.

Talks have been taking place to try to come up with a future use for the plant since its closure in 1990.

The site's owners, Brymbo Developments, already have planning permission to build 300 houses, a shop and industrial units there.

The company will begin the process of redevelopment by undertaking a completely self-funded scheme on some two-thirds of the site, creating 15 acres of land for housing.

The rest of the site, which will need major earthworks, demolition and treatment of contaminated soil, will be passed to the local authority which will commission the �8.5m of work necessary with 100 per cent grant aid from the WDA.

'Scar on landscape'

Mr German said the scheme would "remove one of the main scars on the landscape of north Wales".

"The Assembly recognises the project's huge importance not just to Wrexham, but to north Wales as a whole, " he said.

The WDA's managing director for north Wales, Chris Farrow, said the agreement would allow them to tackle the biggest outstanding piece of derelict land in the area.

"It will be a very expensive project because of the complex engineering problems that need to be solved," he said.

"But the environment benefits will be huge.... At last the Brymbo community will be rid of a bad memory and a major eye sore."

Local residents had voiced their anger at delays in redeveloping the area.

Moves to regenerate the site suffered a setback in July when the region lost its assisted area status.