Upmarket department store John Lewis is to open a new £100 million store at Birmingham’s New Street station it was announced today.

A total of 650 jobs will be created at the store, which will form the centrepiece of the transformed station.

It will be the anchor store for the renovation of the ailing 1960s-built Pallasades shopping centre.

John Lewis Partnership managing director Andy Street revealed the deal today. The 250,000sq ft development is scheduled to open in 2014 and will be one of the group’s largest sites outside London.

Mr Street said: “We are pleased to play our part in the regeneration of Birmingham city centre.

“We will deliver a landmark, long-term investment and quality job creation. This project fulfils our ambition to bring our retail and employment offer to Birmingham.”

Work on the redevelopment of New Street Station began last year with completion scheduled for 2015.

When completed in 2015, the revamped station will double passenger capacity and feature a concourse that is three-and-a-half times bigger and enclosed by a giant, light-filled atrium.

It is claimed that it could create 10,000 jobs and will bring economic benefits worth a total of £2.3billion to the region.