The redevelopment is expected to be complete by autumn 2011.
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A multi-million pound redevelopment of an Oxford shopping centre has been given the go-ahead by city planners.
Legal agreements have been signed and work is due to start on the new Westgate shopping centre later in 2007.
The four-year revamp will create a 1,335-space car park, a four-storey department store, new cycle routes, a roof top restaurant and 127 new homes.
The library will also be modernised and £3.8m will pay for improvements to Oxford's public transport system.
City centre regeneration
The scheme has taken many years to reach this stage.
A previous Westgate refurbishment and expansion plan, approved by the city council in 2000, was rejected by the government in 2002, despite a planning inspector's approval.
Key figures involved in the project said the final planning approval marked a major step forward in the regeneration of Oxford's West End area.
Councillor John Goddard, leader of Oxford City Council, said: "It will not only include very welcome shopping facilities, but it brings more housing, including affordable housing, into the city centre."
Councillor Keith Mitchell, leader of Oxfordshire County Council, added: "Last year we had the opening of the Castle development, and now we have this exciting retail scheme to look forward to."
It is hoped the redevelopment of the 5.7 hectare site will be finished by autumn 2011.