Plans for the £750m regeneration of the 468-acre (189.4-hectare) Longbridge site are set to move forward after Birmingham City Council (BCC) and developer St Modwen reached agreement over the scheme's Area Action Plan (AAP).

A Planning Inspectorate report into the project in south Birmingham is expected at the end of January following the conclusion of a public inquiry into the AAP last month, despite a disagreement over the funding of the community infrastructure. The redevelopment of the former MG Rover factory site includes the creation of a new town centre with a range of public, leisure and retail facilities, as well as nearly 2,000 new homes and the 75-acre (30.4-hectare) Cofton Park and neighbouring Lickey Hills to provide twice the national average of outdoor space for local residents.

St Modwen also plans to open up the Rivers Rea and Arrow for the first time in 70 years, with the Rea set to run through a major new park, while the Arrow will also run through new public open spaces. Mike Murray, senior development manager for St Modwen, said: "As part of the Area Action Plan process, an Exaimiantion in Public took place in 2008, concluding in December.

"The Examination in Public addressed several aspects of the project, adhering to an agenda drawn up by the Planning Inspector appointed to lead the process. "In relation to funding, Birmingham City Council and St Modwen proposed amendments to the wording of the Area Action Plan with regards to the Community Infrastructure Levy, in order to safeguard the long-term viability of the project."

Also involved in the project is the regional development agency, Advantage West Midlands, and Bromsgrove District Council.