A "VITAL" deal to bring DIY giant Homebase to Rossendale is close to being signed.

And developers The Hurstwood Group told of the deal's importance as they said it would help finance the rest of its £40million New Hall Hey development.

Homebase will be the "anchor" store for the scheme, which will also include a leisure and fitness complex complete with swimming pool.

It is part of Hurstwood's major regeneration project for Rawtenstall town centre which will create around 1,000 new jobs.

Three other sites, the Soldiers and Sailors Club in Queens Street, Wesley House and former cinema the Heritage Arcade in Bacup Road, are also to be transformed in the scheme, to create a mix of retail, commerce and leisure facilities.

The New Hall Hey development got the final go-ahead from the Government in August.

Rossendale Council approved the plans four months earlier, but such is the scale of it, higher consent was required.

When the plans were approved, Hurstwood Group chairman Stephen J Ashworth said it would be a "fantastic" scheme for Rossendale which would benefit future generations, creating 1,000 jobs.

Hurstwood senior development consultant Alastair Procter said: "We are now close to finalising a deal with Homebase in order to bring a DIY store to the site.

"It is vital we conclude that deal because it will help finance the rest of the scheme.

"All told we have been working on these plans for more than three years and we are delighted to have cleared this final hurdle and look forward to getting started."

The first phase of the regeneration work has already begun at the Wesley House site.

The construction phase will also include a roundabout on the Edenfield bypass.

The second and third planned phases - which could see Hurstwood's total investment in Rawtenstall rise to £100million - are converting Holly-mount House into apartments and houses, and building a hotel and apartments at the Accrington and Rossendale College site.

All three phases are expected to take 10 years to finish.