The former Ford foundry site, stretching from the old Quicks garage to the bus depot and the station itself, is included in the scheme to 'regenerate' the area and create a 'gateway' to the town.

Following a six-week public consultation that ended in July, consultants GVA Grimley formed a new planning brief, taking into consideration the points raised by the 72 responses from the public and nine from the land owners concerned.

Speaking at a Warwick District Council executive meeting at Leamington town hall on Monday, Gill Griggs for GVA Grimley said that there had been support for creating a residential area to the north of the station.

She said: "This would obviously require the relocation of the Stagecoach bus depot, but there is a real opportunity for more housing."

Proposals for a mix of uses on the former Ford site - including a centre of high-tech research firms and further education buildings - were also backed, but with a call for more guidance from transport experts.

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Stagecoach expressed concern over the relocation of its bus depot.

Speaking for the company, Tim Miles said: "The depot is used by some 60 buses, about 150 people work there, and it works on more or less a 24-hour basis.

"The bus service supports people such as the elderly, schoolchildren and the disabled, as well as people who live in rural areas and do not have access to a car."

He added: "I would like to emphasise that Stagecoach does support the brief, but that we would request some minor changes be made. This proposal could result in a very severe impact on transport in Warwick district."

Coun Bill Gifford (Lib Dem, Leamington Milverton) said: "Clearly the process could not take place without Stagecoach's agreement."

He also expressed the need for a design brief and for wildlife surrounding the area near to Princes Drive to be conserved.

He added: "Pedestrian and cycling provisions are something we would not like to see being lost in negotiations. But overall it is a very positive and thorough brief. This I see as the end of the beginning."

Further consultation which will allow for representatives from different sectors to work with the new brief will now take place.