A cinema, fashion shops, restaurants and bars are set to be built in Walsall as part of the final phase of a multi-million regeneration of the market end of the town.

Bosses behind the St Matthew’s Quarter project have refused to comment on details but have said a planning application will be submitted by the end of the year.

On its website Walsall Regeneration Company states: “The scheme will combine new high-fashion operators, quality restaurants and bars and an innovative in-town cinema, the combination of which will attract a broader customer base, creating vibrancy, energy and enhanced consumer spend.”

It is understood the plans may include the demolition of the 1960s Overstrand, a former restaurant and nightclub linking the Old Square shopping centre with Digbeth, and the overhaul of the shopping mall.

Bulldozing the club was first proposed in 2001 by Norton & Proffitt who are behind the St Matthew’s Quarter project.

The company, a joint venture between Goold Estates and St Modwen, planned to bulldoze it as part of plans for a £50 million factory shopping outlet, but the scheme was scrapped in 2005 due to lack of interest from retailers.

Speaking late last year Derek West, development director of St Modwen, said: “We are working up the final phase which will comprise a major retail-led regeneration of the town, probably involving Old Square and its owners Threadneedle.”

Dominic Goold, managing director of Goold Estates, said: “Town centre development is complex and it is a big site but we are working on submitting a planning application for phase three by the end of the year.”

By Emma Tate