A MAJOR £100m scheme to overhaul an ailing Hampshire shopping centre has been approved by planners.

It means Whiteley Village will be flattened and replaced with a new development, comprising shops, restaurants, cafes and a community centre.

It comes less than a decade since the £60m facility was built off junction nine of the M27. But it has been branded a retail flop because it has failed to meet residents' shopping needs in the 3,000-home town near Fareham.

The new development is designed to be more in tune with local needs and it is proposed a library and community facility will be included.

Planning officer James Jenkinson said: "One of the problems with Whiteley is that the few people that go there come from outside and lots of people that live there don't use the local shops."

Christopher Newns, representing applicants The Whiteley Co-Ownership, said: "The main reason for the lack of success is that the original development was focussed as a factory outlet and this is a market that's been dominated by Portsmouth's Gunwharf Quays."

Cllr Ian Tait, speaking before members of Winchester City Council's planning committee unanimously approved the plans, questioned its green credentials.

"In terms of its environmental footprint these are entirely adequate buildings that are being pulled," he said. "The simple reality is these buildings should have lasted 50, 60 or 70 years."

The revamp was opposed by 15 residents but a WCC paper revealed many of these were withdrawn when plans to build up to 70 homes as part of the scheme were scrapped.

Fareham and Eastleigh borough councils also objected, saying it would adversely impact the vitality and viability of their town centres.

"This will benefit the people of Whiteley now and in the future," said Therese Evans, city councillor for Wickham. "I'm surprised at the criticisms of Fareham Borough Council when many of its residents live in Whiteley."

Cllr Vivian Achwal, who represents Whiteley on WCC, said: "The residents of Whiteley welcome the new centre but I just hope in another 10 years time we don't see another new centre built here."

Mr Newns, speaking after the scheme was approved, said: "We're delighted and we're looking forward to delivering a successful development there.

"We hope to be on site in the first quarter of 2011 and complete two years thereafter."

Outline plans for a four-storey hotel were also approved with further details expected in the coming months.