PLANS for a £1 billion scheme to build 4,000 new homes in Newport were welcomed by city councillors yesterday, after it was announced proposals for the development at the former Llanwern steel works are back on track.

The Argus reported yesterday that regeneration company St Modwen was in final stage discussions with a house builder for 140 homes to be constructed on part of the 600 acre site, after plans originally agreed in May 2007 fell through because of the housing market collapse and economic recession.

The 140 houses would be the first step in developing a new residential and business community over the next 20 years. The new development, called Glan Llyn, will include 4,000 homes, 6,000 new jobs, a new district centre with retail and leisure facilities, a library, police station, supermarket and two new schools.

There will also be parks, lakes, sports space and play areas.

Leader of Newport City Council Matthew Evans said yesterday he was “delighted” St Modwen and the council had been able to move the Glan Llyn project forward.

He said: “St Modwen has shown confidence in Newport and that speaks volumes particularly in the current economic climate.”

Llanwern ward councillor Martyn Kellaway said: “It’s fantastic news that at long last this is starting to move along - fingers crossed now it will get started. It would be brilliant for the area, and for Newport.”

Newport city council’s head of service for planning, regeneration and strategic housing Andy Evans added that while Newport will reap the benefits of the Llanwern site being used as a park and ride site for the Ryder Cup 2010 in the short term, the site would be “transformed into a thriving community” in the future.