Google's sister company Sidewalk Labs has reached a conditional agreement with Waterfront Toronto for the planned smart neighbourhood development on the city's eastern waterfront.

Sidewalk Labs was set up by Alphabet to reimagine how cities can approach the challenges of urban growth using technology and innovative planning.

In 2017, it was announced that the company's first real-world project would be in Toronto.

After 18 months of research and consultation, Sidewalk released its a Master Innovation and Development Plan for the district, dubbed Sidewalk Toronto.

Following a further period of discussion the two parties now have the basis for an agreement that will see an initial 12ac (5ha) Quayside phase developed with the potential for further later development.

The aim is for Sidewalk Toronto to be a mixed-use district that will both help to shape the future of Toronto and act as a testbed for the development of other such schemes in future.

Streets, parks, plazas and open spaces will be built in such a way as to encourage people to spend more time outdoors together.

Streets will prioritise pedestrians, with curbless designs, outdoor comfort strategies and pavements embedded with lighting and heating elements.

Pedestrian-only walkways will link public and cultural spaces at street level, while office spaces will be raised away from the ground.

Transport schemes and mobility approaches will see more than three-quarters of trips are taken by public transport, walking or cycling.

And social infrastructure schemes for the likes of health, civic life, learning and working will be created to help people thrive.

Stephen Diamond, chair of the Waterfront Toronto board of directors, said: "While a final Board decision whether or not to proceed has yet to be made, we are pleased that we are now able to move to the evaluation stage on a project that has the potential to create new jobs and economic development opportunities, create carbon-neutral neighbourhood, and more affordable housing units."

Waterfront Toronto will now conduct further evaluation and consultation on the project, before making a final decision about whether to move forward by March 31, 2020.