CREWE town centre’s proposed multimillion pound overhaul has moved a step closer to reality.

Cheshire East Council has announced it will start the process to appoint a developer to create a mixed-use town centre development on the Royal Arcade site.

The council purchased the site – which includes the bus station and 26 retail units along Queensway and Victoria Street – for £6 million in April.

This followed years of speculation since plans for the Delamere Place retail and office scheme stalled in 2009.

Cheshire East Council want the site to include leisure attractions, such as a new larger cinema and restaurants, and said it will work with existing occupiers within Royal Arcade.

Michael Jones, council leader, said: “The redevelopment of the Royal Arcade site is pivotal for Crewe and it will set a benchmark for future schemes for other town centre sites.

“It is important that we get this right for the people of Crewe to give them a town centre they can be proud of – and we will.”

The announcement follows on from informal discussions with developers over the summer, which has given the council confidence there is a strong interest in Crewe from developers and investors.

The council is also proposing to create a new stakeholder panel with an independent chairman to play a key role in overseeing redevelopment of the Royal Arcade site as well as other aspects of Crewe town centre regeneration.

Cllr Don Stockton, cabinet member in charge of regeneration and assets, said: “We’ve already secured millions of pounds of investment for the town centre through the new Lifestyle Centre and the University Technical College, which will both open in 2016.

“There is also the prospect of significant investment and growth should Crewe be selected for a new HS2 North West gateway rail hub.

“This is the latest piece in the jigsaw and builds upon strong interest expressed from leisure operators, who share our vision for Crewe.

“It is our strong belief that we can forge a role for the town centre that is based on it being a vibrant and attractive destination for families to spend quality leisure time together.”