Plans for a £100m mixed-use scheme in Newcastle have been approved by the city council, it has been announced.

McAleer & Rushe's proposals for the Newgate Street area include a 270-bed hotel, student housing and 2,000 sq m of commercial space.

The developer also announced that the 575-bedroom student housing complex is to be operated by Unite Students.

The enhanced scheme will be finished in natural stone to further complement the surrounding building's of Grainger Town.

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The student and commercial elements of the project have been reduced, while the hotel size has been increased.

This allows McAleer & Rushe to enhance the public realm with the creation of new landscaped courtyards and a roof terrace.

In addition, there will be a car parking and bike storage at lower ground level.

It is understood the project will create almost 400 construction jobs.

McAleer & Rushe Project Director, Graham Mitchell, said: "This scheme has evolved through extensive consultation with many stakeholders. Today's announcement is the culmination of a lot of hard work, engagement and collaboration to deliver the best possible scheme. We hope to start on site in 2016 and to deliver the student element by summer 2018. However this is a very challenging site and there are still a number of complexities across the 1.75 acre site, particularly in terms of the prominent city centre location, that we have to resolve."

(LM/CD)