HUNDREDS of jobs could be created by Marks & Spencer at a massive distribution centre it hopes to set up in Castle Donington.

At 900,000sq ft, it would be one of the biggest buildings in the East Midlands.

Built at East Midlands Distribution Centre on the site of the former Castle Donington power station, it would be big enough to house 10 football pitches.

The high street giant has signed a lease with Derbyshire property firm Clowes Developments.

Development costs would be likely to stretch to tens of millions of pounds.

A spokesman for Marks & Spencer said: "I can confirm we have agreed a lease on a distribution centre in Castle Donington, subject to planning consent.

"It is too early to say exactly how many people would be employed there but it would be in the hundreds," he said.

A deal would also be good news for Derby's rail firms as it could bring forward the construction of a rail terminal in Castle Donington.

According to the planning documents, Marks & Spencer intends to bring in much of the stock by rail.

Work to create a rail link to the site would begin in January. Clowes Developments signed a deal with Network Rail in June.

At the time, Clowes director Paul Shanley told the Derby Telegraph the best-case scenario would be that the rail terminal could be in use during 2012.

Use of rail is part of Marks & Spencer's plan to make its operation as environmentally friendly as possible.

If approved, the building would include recycled and recyclable materials.

Roofs would capture rain to reduce water consumption and the designs allow that solar panels could be fitted.

Clowes Developments lodged its planning application this month. A decision is expected by early November.

If plans are approved by North West Leicestershire District Council, building work would start this year.

A slightly larger Marks & Spencer warehouse that opened in Bradford last month cost £40 million and employs 300 people.

Next year that number is expected to rise to 450, with Marks & Spencer expecting the site to employ 1,200 at full capacity.

The distribution centre in Castle Donington is expected to be ready during 2012.

It would store goods for sale through Marks & Spencer's website and via its in-store ordering system, as well as general non-food merchandise.

A Marks & Spencer spokesman said: "The scheme is subject to planning consent being granted and, all being well, we intend to start construction this year.

"It is too soon for us to give an exact time for completion but we expect the centre to be up and running at some point in 2012."

A joint venture between Clowes Developments and Solihull firm First Industrial Developments would construct the warehouse before it was handed over to the retailer.

Nick Hosking is a Derby property agent specialising in large distribution centres.

He said: "It would be as big as just about anything in the East Midlands.

"It's a very important deal and would bring in a huge amount of employment to the area."

The Marks & Spencer hub is not the only large distribution building earmarked for the area.

Planning permission is in place for a 1.2 million sq ft warehouse at Derby Commercial Park, off Raynesway.

Mr Hosking said: "Marks & Spencer coming to Castle Donington is hugely positive news for the local economy and further evidence of strong take-up within the local and regional distribution market, which is a large employer.

According to Marks & Spencer, its distribution centre would be built and operated in the most energy-efficient and environmentally-friendly way.

The spokesman said: "It would be carbon-neutral, with the carbon that is used offset by buy carbon credits.

"The money used to buy these is typically invested in environmental projects, such as tree-planting, forest-regeneration and clean-energy projects, usually in the local area.

"To offset carbon emissions in Bradford, we are investing in woodland and wetland areas," he said.