THERE were celebrations at a closure-threatened Newport sports club last night as it emerged a multi-million pound homes plan would safeguard its future.

The Argus exclusively revealed last week major plans to transform the eastern side of the city, creating 1,700 new homes and thousands of jobs.

Yesterday St Modwen Properties pledged to invest over £200m to turn part of the Corus steelworks site into 1,700 homes, businesses and 7,000 jobs.

The company's executive director Richard Froggatt revealed Llanwern Sports and Social Club would be part of the new community.

In June 2001, Corus said the club and its playing fields would shut to make way for possible redevelopment.

An Argus campaign to save the club's facilities for its 2,000 users quickly gathered support from community leaders and Gwent residents.

But Birmingham-based St Modwen Properties say the club will remain, and Llanwern secretary Robert Marchant said: "I'm over the moon and the members will be, too. Now we need it in writing. We need a 25-year lease so that we can apply for grants to improve facilities."

Richard Tolcher, 44, a Corus worker of Arne Close, added: "It's excellent news."

A spokesman for St Modwen Properties said the whole project could be worth £750m, making this the biggest Welsh redevelopment since Cardiff Bay.

The 600-acre site formerly held the furnaces, or 'heavy end' of the steelworks at Corus - 1,540 jobs were lost when steelmaking stopped in 2002. Corus still employs 1,500 in steel processing.

Welsh economic development minister Andrew Davies said: "The significant boost will help rejuvenate and regenerate the area and help stimulate further growth, interest and investment in the Newport area as a whole."

Mr Froggatt said: "We want to plan it very carefully so we attract the best and biggest inward investment we can."

Reclamation and construction contracts would create short-term jobs, Mr Froggatt said, while comparable sites had seen more than 7,000 jobs created in the long-term. The firm hoped to be on site towards the end of 2005, he said.

The value of the deal was undisclosed but sources indicated to the Argus that £18m changed hands.

A spokesman for Corus said: "We have worked with St Modwen before and believe this company has the right approach and commitment to the regeneration of industrial land." l Editorial: page 12