TESCO has finally confirmed it has drawn up plans to regenerate Allenton market and build a new superstore on the site.

The Telegraph revealed last month that supermarket bosses were talking to landowners and councillors in the area about creating a 60,000-65,000 sq ft store, on the site off Osmaston Road, and replacing the existing market with a new one on the land currently occupied by the Mitre pub.

Now the shop giant has confirmed the plans and said it would feature a state-of-the-art facility for the stalls at Allenton Market, as well as a new Tesco store, petrol station and parking spaces.

It said the proposals would bring new local jobs, possibly up to 300, and regenerate Osmaston Road.

Tesco is in initial discussions with Derby City Council, which still owns the Allenton market site.

A spokesman for the company said it would be consulting widely with the local community and traders before an application was submitted. Early ideas are to make the store environmentally-friendly.

Features include rainwater "harvesting", natural ventilation, a combined heat and power plant and a new on-site recycling facility.

Announcing the proposals, Tony Fletcher, corporate affairs manager at Tesco, said: "We look forward to working with the council, the community and local businesses to bring new jobs, choice and regeneration to Allenton.

"We aim to provide the market with new facilities that we believe local traders will welcome. We are still working to develop our plans and will be seeking to involve the local community closely as they evolve."