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Southampton has been awarded £7.2m to build a new arts complex in the centre of the city.

Plans for the project, on the site of the former Tyrrell and Green building in Guildhall Square, were originally published in 2003.

The complex was due to open by 2008, but was delayed due to the recession.

The scheme was originally offered £5.7m, but will now receive an extra £1.5m to support changes, including the redesign and relocation of the gallery.

The money has been given to the city by Arts Council England.

Demolition work to clear the site is almost complete, and when it is built the overall development is expected to create about 300 jobs.

It will be built by developers Grosvenor and will form part of the Cultural Quarter in Southampton, alongside the Sea City Museum, which is set to open in 2012.

Councillor John Hannides, cabinet member for leisure, culture and heritage at Southampton City Council said: "This capital project has been developed over a significant period with a range of arts organisations.

"It will be a place where the arts can thrive and be celebrated, and I am delighted that our residents can now look forward to this being built in the city."