Planning approval is to be granted for the £250 million (€363 million) development of the Victoria Square area in Belfast's city centre, it was confirmed yesterday.

Northern Ireland Office Minister for Environment, Ms Angela Smith, issued a notice of opinion to approve the scheme, which will be one of Europe's largest retail developments.

The minister said she judged the retail-led application to be "appropriate". The project's Dutch developer - Multi-Development Corporation - has 28 days to accept the proposal and the various conditions attached.

The scheme was first mooted four years ago but has been stalled by a series of High Court challenges, a public inquiry and the suspension of Northern Ireland's power-sharing government.

The plans provide for 500,000 sq ft of retail space which would include a major House of Fraser department store.

The development will also include hotel, health club, restaurants, apartments and underground parking.

It will be centred on two multi-level covered streets linking to a 35 metre-diameter glass dome.

The scheme will provide some 3,000 jobs during construction and 3,000 permanent posts upon completion.

The minister said she was also considering two other major retail developments for Belfast city centre.

One is for an extension of the existing Castlecourt shopping centre in Royal Avenue which is at an advanced stage of consultation.

The other is for a retail, office, car parking and residential development nearby on land between Royal Avenue, Lower Garfield Street and North Street and between North Street and Donegall Street.

This application was received in February. - (PA)