Work will start on the new Morfa Stadium this year

Swansea Council has exchanged contracts with asset management company Capital & Regional for approximately 30 acres of land around the Morfa site.

Supermarket chain Morrisons and DIY retailer B&Q are among the businesses who will occupy the retail park.

The authority will use the money to build the stadium that will be home to Swansea football club and the new regional Swansea and Neath rugby side.

We look forward to continuing our successful relationship with Swansea council to create the premier retail park in west Wales Capital & Regional's Andrew Lewis-Pratt

Work on the arena is set to begin in October with a completion date of autumn 2005.

Capital & Regional executive director Andrew Lewis-Pratt said: "We are delighted to have obtained all the consents necessary to enable this exciting project to commence.

"We look forward to continuing our successful relationship with Swansea council to create the premier retail park in west Wales."

The site also has planning consent for retail and leisure development.

Construction of the retail park will begin this year and is set to be finished within 12 months.

It is hoped the stadium will also host regional, national and international sporting events, and pop and classical music concerts.

Council leader Lawrence Bailey told BBC News Online the council was now eager to press ahead with the project.

"We are delighted that we have had the money for the stadium.

"Without the sale of the land it could not have been built."

The existing Morfa Stadium will be demolished.

The plans also include the construction of a new sports village to provide a centre of excellence alongside the Wales National Swimming Pool at the University of Wales, Swansea.

Swansea has waited a long time for the new stadium.

Plans were first unveiled in the 1990s when it was hoped it would be built by 2001.