NEWPORT city council is to invest in the shopping centre scheme to redevelop the city centre.
Cabinet members agreed in principle to the council becoming one of the early investors to help drive the relaunched Friars Walk scheme forward.
Full financial details will be negotiated by the cabinet subgroup overseeing the project, but will not be made public because they are considered commercially sensitive.
The news comes just weeks after the authority selected developer Queensberry as its preferred bidder for the new retail and leisure development in John Frost Square.
Council leader Cllr Matthew Evans said there were still hurdles to overcome but the authority was committed to making its vision of a revitalised city centre a reality.
He said: “We want to kick start the new development so it can progress as quickly as possible.
“We firmly believe we have chosen the right scheme and welcome the opportunity to become a seed funder.
“This will give us an even bigger stake in the new development.”
Cllr Ed Townsend, deputy leader and cabinet member for regeneration, said it was hoped the move would minimise the risks involved in such a project and ensure it goes ahead.
Residents have waited many years to see the scheme come to fruition after the initial project fell through in 2009 when developer Modus went into administration.
Since then, the council and regeneration company Newport Unlimited has made the city centre a priority in a bid to increase footfall and boost trade.
This includes the introduction of free parking in council car parks and an investment of £2.6 million by Newport Unlimited to improve the environment in the city centre and Newport Market.
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