TALKS have begun over a £20m plan to revive a rundown North-East town centre.

Derwentside District Council is in talks with a property developer and businesses over the plan for Stanley, in County Durham.

Suggestions include demolishing properties at the top of Front Street near the new £4.3m bus station to create a shopping mall.

Up to 20 existing businesses could be issued with compulsory purchase orders as part of the scheme, which would also see bigger premises created for Asda on the site of the former bus station, which is currently being cleared. The existing supermarket would be demolished and used for parking space.

Council leader Alex Watson said: "If this comes off, it will be a massive boost for Stanley because developments like this attract money.

"We think the developer will see the enormous potential on offer here and it will be a huge vote of confidence for the people in the town.

"I think once the ball gets rolling, you have just got to keep it going, but people can be assured there will be exhibitions about the plans and an extensive consultation process."

The council is in talks with Manchester-based Modus Properties, which spent £45m in the mid-nineties to create the Castledene Shopping Centre in Peterlee.

A similar £30m scheme is due to start in Seaham in May.

Modus Properties director Richard McGawley said: "We are big shopping centre retail developers and we have extensive working relationships with national outlets so we can attract them to new developments.

"Our experience and expertise has been developed by doing this all over the country.

"We would need to work out what is suitable for a town centre such as Stanley and the key is getting the balance right."

Asda said it had no immediate plans to vacate its current site, but a spokesman said: "We are always interested in talks about town centre regeneration."