A stalled £100 million leisure and heritage scheme in the heart of Dudley, including a revamp for the town’s zoo, could be saved by a new investment deal, it has been revealed today.

Dudley Council Leader David Caunt said the authority was on the brink of an agreement with Advantage West Midlands for “several million pounds”.

If agreed, the new contract would help to resurrect the Castle Hill plans which feature a £10m package for Dudley Zoo including a mini version of Cornwall’s Eden Project.

Talks between the council and developer St Modwen broke down in February putting the project in jeopardy. It had been feared it could take up to two years to select a new developer and get the ambitious scheme off the ground.

But Councillor Caunt said talks about setting up a “venture partnership” between AWM and the council along with Dudley Zoo, the Black Country Living Museum and Dudley Canal Trust were progressing well.

“It is a way forward from the stalemate situation we have now. It will help get it off the ground and help give us another opportunity to look at whether what St Modwen had planned was the right way forward,” Councillor Caunt added.

He would not reveal the exact amount the new deal with AWM would be worth.

The scheme would run alongside the zoo’s own five-year plan to add new attractions including the recently-opened lion enclosure. Dudley Zoo chief executive Peter Suddock said: “I am delighted David Caunt feels so positive. We have been working hard with AWM and Dudley Council to make sure the scheme goes ahead. This is good news.”

AWM Partnership Director Mike Foley confirmed talks with Dudley Council were progressing.