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Planning permission is being sought by Derby Hospitals NHS Foundation Trust to create a mixed-use development on the site of the former Derbyshire Royal Infirmary (DRI). Proposals for the 20-acre spot on London Road include a 50,000 sq ft supermarket, 450 new homes and office accommodation. A second phase is expected to add a four-star hotel to the development.

The site became available after the relocation of major acute health services to the new Royal Derby Hospital last year. The London Road Community Hospital, which remains on the DRI site, will be unaffected by the plans.

The development has been branded the Nightingale Quarter to commemorate the history of the site, and project manager MACE said it hoped that the name will be retained by the developers once the land is sold.

Derrick Conway, assistant director of estates at Derby Hospitals NHS Foundation Trust, said: “Derby City Council is still considering a number of sites – including the Nightingale Quarter - for its recently launched £50m leisure strategy.

“We don’t want to pre-judge the outcome of their evaluation but are committed to working with the city council if the DRI site emerges as the preferred option.”

Although there was strong support from residents for an Olympic-sized swimming pool to be included in the outline planning permission, this was omitted from the final document.

Commenting on the outline planning application, David Grose, operations director of project manager MACE, said: “If we are going to establish the city centre as a sustainable and attractive place to live and work, we need to have the right blend of facilities and services in place to enable this to happen.

“The Nightingale Quarter scheme will bring about a major regeneration of the eastern fringes of the city – and as well as providing additional retail and housing opportunities, it will reduce reliance on cars for the weekly shop, which is a very positive move.”

A decision on the application is expected in early 2011.