Ambitious plans to transform the former MG Rover site at Longbridge, with new housing, shops, industry and the creation of 17,000 jobs, have been launched for public consultation.

An Area Action Plan produced by Birmingham City Council and Bromsgrove District Council sets out options for the redevelopment of a 330-acre site either side of the A38 Bristol Road.

Proposals range from using the entire site for industrial development, to the creation of a new town centre for Longbridge, with a superstore, shops and offices.

The blueprint for the future was drawn up following the closure of MG Rover in 2005, which resulted in the loss of more than 6,000 jobs.

Unemployment in Longbridge rose from 5.6 per cent to 9.1 per cent following the collapse of the car firm.

Almost one-third of the site, 105 acres, has already been leased to the Nanjing Automotive Company, which aims to restart car production next year but will employ fewer than 500 people.

Much of the rest of the land under consideration forms part of the A38 Central Technology Belt and is zoned for high-tech industrial development.

The consultation period will run until February next year. The two councils will then submit final plans for the site, which will be the subject of a public inquiry in 2008.

Although no decisions have yet been made, Birmingham City Council has made clear its determination to see at least 10,000 jobs created at Longbridge. Option one in the action plan, an employment-led scheme, would deliver up to 17,000 jobs over a 15-year period.

Ken Hardeman, the Birmingham cabinet member for regeneration, said: "We would like to retain as much of the Longbridge site as possible for employment opportunities.

"It is important though that people living in the area let us have their views about the type of development they would like to see take place. Nothing has been decided in advance."

The employment-led option could also see the Birmingham wholesale markets move from Digbeth to Longbridge, although Coun Hardeman (Con Brandwood) stressed that this was only one of several possible relocation sites.

The vision for Longbridge, according to the action plan, is to produce a "positive transformation to the benefit of the residents and businesses in the area, the city as a whole and the wider region".

The document goes on: "There will be significant economic regeneration that will secure a restructured and vibrant local economy that provides a range of jobs including those in growth sectors.

"Regeneration of the area will capitalise on the potential of this unique and large site to provide new businesses, industry and other employment generating uses of local and regional importance.

"To complement economic regeneration there will be social and environmental benefits including new and improved local facilities, environmental improvements and an enhanced transport network.

"These will help Longbridge become a distinctive neighbourhood at the forefront of regeneration."

The document promises high quality design creating "a real sense of place with a strong identity and distinctive character".

The intention is to make Longbridge a place where people want to live, work and visit, the plan adds.