It will be the first step to deliver the new Friary Quarter neighbourhood of 500 homes and ground floor retail, leisure and amenity space.

A new planning application is expected to be submitted this summer with construction commencing 12 months later.

Councillor John Rigg, responsible for regeneration at Guildford Borough Council, said: “I am delighted after seven or eight previous failed schemes on this site over three decades and two years of hard negotiations, we are now under contract with one of the country’s leading housing developers, able and enthusiastic to bring forward such a fantastic regeneration scheme.

“For us to be able to deliver new, sustainable homes and create an exciting new neighbourhood helping to take the pressure off the green belt, whilst also aiding the recovery of the high street is a huge opportunity.

“The extra wins of a new bus interchange and removal of vehicles and pollution from North Street will create a wonderful, safer new environment for visitors to the town.”

Paul Vallone, Executive Chairman of St Edward, added: “We are very excited about engaging with the local community to design a beautiful development with attractive places to shop, eat and catch up with friends.

“We believe we can make somewhere truly special, with its own distinct character, whilst providing a fantastic amenity for local people. This is about creating homes and shared spaces that everyone can enjoy.”