NEWPORT'S new city centre university campus is back on track following delays.

A new contractor is on board and work on the eagerly awaited £39 million first phase of the riverfront scheme is expected to start before Christmas.

Already being described as an "iconic" building - before even a brick is laid - the prestigious project is regarded as a vital part of the city's regeneration.

Fears over the future of the campus began circulating in the summer as the credit crunch began to bite and construction failed to begin as scheduled in the summer.

But a university spokeswoman told the Argus at the time that the project was definitely not on hold although she confirmed there were delays.

And it appears the problems have now been overcome.

A spokesman for the University of Wales, Newport, said it was working closely with Willmott Dixon Construction to build and develop the campus in the heart of the city.

He added that it would still be completed as planned in 2010.

It is intended that the campus will accommodate the renowned School of Art, Media and Design and Newport Business School.

A feature of the building is a proposed "hothouse" and it is intended the campus will be a focal point for learning creativity and enterprise both in Newport, south east Wales and internationally.

It will herald a new future both for the university and the city.

A grand ceremony was held on the site earlier this year to mark a new era of education when film director Ken Russell set his handprints, and signed his name, in concrete to be eventually displayed at the completed campus.

Willmott Dixon Construction is one of the UK's leading companies in its field.