One of the biggest city centre redevelopment projects in Europe is to take place in Liverpool.

Rundown buildings in the Paradise Street area will be transformed into a complex of shops, bars, restaurants and cinemas as part of the �700m scheme.

The Duke of Westminster's Grosvenor Henderson group will provide the bulk of the money.

About 4,400 jobs will be created in the project, which was approved by Liverpool City Council on Thursday.

The Paradise Street area is currently rundown

A council spokesman said: "We were determined we would not have a mall development - a Trafford Centre in the middle of Liverpool.

"It will keep much of the current street plan, use many of the current buildings and will not require large-scale demolition."

The current development was approved after a rival bid by the Walton Group was rejected by the city council and Deputy Prime Minister John Prescott on design grounds.

The Grosvenor project will feature two department stores, other shops, hotels and a new public park.

There will also be 3,000 car park spaces and a raised terrace from one end of Chevasse Park descending towards the docks.

Planners hope it will be finished by the end of 2007.