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Plans to redevelop a Victorian asylum plagued by arson and vandalism have been welcomed by people living nearby.

North Wales Hospital in Denbigh has been a blight on the landscape for years, but the North Wales Economic Ambition Board (NWEAB) said the scheme would restore the Grade II-listed building and create new homes, business spaces and green community spaces.

NWEAB said the development hoped to create 360 apprenticeship opportunities, supported by a new on-site training facility, and 70 full-time jobs by 2035.

Denbighshire council leader Jason McLellan said the £107m plans could be "a real benefit" for the town.

"Our hope is that we can help transform this derelict site, bringing much needed new homes and jobs to the town and wider community," he added.

Councillor Huw Hilditch-Roberts said the "opportunities for work and apprenticeships is huge and will benefit companies and the people of Ruthin to support the infrastructure of our small towns".

The project, delivered by Jones Bros, will redevelop the derelict 53-acre site.

Built between 1844 and 1848, North Wales Hospital was designed to provide care for up to 200 Welsh-speaking people with mental illnesses.

However, by the mid-20th Century it housed about 1,500 patients.

As medical and public opinion turned against Victorian-style asylums, it was first earmarked for closure in the 1960s.

But it took until 1987 for the recommendation to be implemented, with the last patients leaving in 1995.

Since then, the former hospital has been the scene of numerous fires and acts of vandalism.

The council took over the site in 2018, five years after it began the bidding process.

Wales Office Minister Nia Griffith said: "It is fantastic news that this development is moving forward and breathing new life into this iconic site, which has been derelict for so long.

"Once it’s completed there will be new homes, business spaces and open green spaces to benefit the whole community."

Huw Jones, chairman of Jones Bros, said: "The project still has a long way to go, and many elements need addressing and agreeing before we can begin work on site."

He said his team was "excited" the project could progress to the next phase now funding has been approved.

"As a local company we are very aware of the site’s significance and the part it has played in the town’s history," he added.

"It deserves to be restored and to become a focal point within this community once again."