PLANS are being drawn up to transform an empty Worcester hospital site into a multi-million pound college campus surrounded by bars, businesses and an arts centre.

The ambitious project hinges on Advantage West Midlands completing a deal to buy the Castle Street site from the Department of Health.

The Evening News understands an announcement on the site's future could be made tomorrow.

The main focus of the proposals would be a new 5,000-student campus for Worcester's University College.

The site would be complemented by office space for businesses, bars and shops as part of a major project to regenerate the city.

A new arts centre, linked to the college, could also be included - with hopes this could even provide a new home for the closure-threatened Swan Theatre.

Negotiations have been taking place between Worcester City Council, Worcestershire County Council, Advantage West Midlands, city MP Mike Foster and the Department of Health.

The idea is for Advantage West Midlands - a regional development agency armed with a large budget - to purchase the site without it having to be put up for sale on the open market.

This would then relieve the pressure on University College - which already has a campus in St John's but wants to double in size - to come up with funding to pay for the land straight away.

It would instead be able to win approval for its proposals from the Higher Education Funding Council without the threat of the site being bought by another developer in the meantime.

The future of the hospital site, which has been empty since Worcester Royal Infirmary moved to a new site in March, has been the subject of great debate.

Last year, city councillors said the city should "seize the opportunity" to create a new theatre with arts centre

Meanwhile, NHS consultants suggested the creation of a hotel, offices, leisure facility and arts centre on the plot, while retaining the historic buildings.