Poole's "gateway to the future" site has cleared its final hurdle and work could start on the £25 million scheme this year.

Proposals including 200 homes and an Asda superstore on the 11-acre Dalgety site in West Quay Road were approved by Poole Council, but had to be referred to the Office of the Deputy Prime Minister.

However John Prescott's department has decided not to call in plans for the mixed-use site and with only a few loose ends to be tied up with the council, nothing now stands in the way.

The scheme includes:

l a 45,000 sq ft Asda superstore

l nearly 200 homes including 96 waterfront apartments

l waterfront restaurant

l 80-100 bedroom hotel

l 100,000 sq ft office development

l shopping arcade

l public park fronting Holes Bay

l multi-storey and surface parking.

Eighty new homes will be affordable housing and Asda will fund a £1.5 million improvement to the Hunger Hill road system.

Cllr Bob Williams, environment and regeneration portfolio holder said he was not surprised the scheme was approved.

"It's pressing all the right buttons. I believe we have established really good use of that site," he said.

"With a retail store, hotel, offices and residential, including the bonus of 40 per cent affordable housing, we have established a precedent for the rest of the development in that area," he said.

Ward councillor Brian Leverett said: "This is good news for my ward and it's good for the people of Poole.

"This is the type of development that we need and it brings much-needed competition in an area where everybody has to shop."

Naomi Duggan of Asda said if the target of starting by the end of the year could be met, the superstore, car parking and a significant proportion of affordable housing would be completed by the end of 2003.

"On this basis, within just a few months we will have delivered a scheme which not only meets many of the council's aspirations for redeveloping the harbourside area but also significantly improves food shopping choice in Poole, creates at least 400 new jobs as well as delivering much needed affordable new homes," she said.

The second phase of residential, hotel, commercial space, restaurants and retail, would be completed in 2004.