The hospital has fallen into disrepair in recent years

Four months ago, the prince visited the Grade-II listed building in his capacity as president of his restoration scheme, the Phoenix Trust.

He said the building should be converted into apartments and flats.

His proposals have now formed the basis of the current owner's plans submitted to Denbighshire Council.

Acebench Investments want a mixed development scheme for housing, employment, community buildings and open spaces.

I welcome the application as the culmination of considerable effort Graham Boase, Denbighshire Council

The local authority said the proposals are broadly in line with those that were the subject of a public consultation launched in July by Prince Charles.

The former psychiatric hospital has fallen into disrepair and has been vandalised since it closed in 1995.

The building is recognised as a pioneering example of early Victorian asylum architecture.

Speaking in July the Prince of Wales said: "I am not prepared to see this huge legacy squandered, especially as, with imagination, it would be a huge asset."

Asset

The previous owner, Lancashire-based businessman Gerald Hitman bought the site from North Wales Health Authority for �155,000.

He sold the building, built between 1846 and 1848, in 1999 after selling off parts of the land.

He had planned to build a housing development on the 120-acre site.

However, he ran into local opposition and the listed building was left empty until it was bought at auction by Acebench Investments, who still own the property.

The company paid �310,000 for it at auction in 2002.

Graham Boase from Denbighshire Council said he welcomed the new plans for the site.

"I welcome the application as the culmination of considerable effort but it will be dealt with, as with any other application, on its merits," he said.

The Prince of Wales' Phoenix Trust was set up to repair and find new uses for major historic buildings which are in danger of falling into decay or facing demolition.

He said the former hospital was one of the buildings which had inspired him to act and he said he was not prepared "to see this huge legacy squandered, especially as, with imagination, it could be a huge asset".

Denbighshire County Council, CADW, the Welsh Development Agency (WDA) the current owners and Phoenix Trust all backed a feasibility study into potential uses.

The proposals will be exhibited in Denbigh Town Hall on 2 and 3 December.