Birmingham city centre could be transformed with an exclusive new canalside development, council bosses have revealed.

Planning chiefs are in negotiations with developer Targetfollow to create a multimillion-pound mixed used development on the canal-side Baskerville Wharf site.

If approved, it would comprise new hotels, restaurants, student accommodation, offices, housing and shops.

The development would occupy a site between Centenary Square and Cambridge Street to Farmer Locks.

Councillor Neville Summerfield said: "The initial proposals for Baskerville Wharf will boost Birmingham's standing as a global city, encouraging economic prosperity with a new development in an appealing canal-side location.

"It will fit in with the wider perspectives of Birmingham's Big City Plan, providing a prime site for investment, within a key area where people live and businesses operate."

The developer wants to secure an exclusivity agreement with the council before any specific development work commences.

Julian Wells, development director at Targetfollow, said: "Baskerville Wharf represents an exciting project for Birmingham with the potential for significant inward and national investment.

"With the city set to see £17 billion worth of inward investment in regeneration over the next decade, we want to play our part in this process."

The development site includes the existing Brindley Drive multi-storey car park, the Cambrian Halls of Residence and the Flapper public house. A planning application is not likely to be made until 2009.