EXETER'S landmark former Debenhams building is on the verge of being let to a major retailer after lying empty for nearly three years, the Echo can reveal.

Talks are at an advanced stage with a new occupier and landlords Land Securities are confident of concluding a deal shortly. But the firm is remaining tight-lipped about who is set to move into the iconic 1960s tower block in Sidwell Street.

Business leaders have welcomed the development and said it will provide a major boost to the city centre.

The building was recently considered as an alternative site for the Waitrose store due to be built at the Heavitree Hospital site, but the supermarket chain deemed it unviable.

A city council report states: "In terms of availability the city council understands that this building will be let shortly... and therefore considers that the site is unavailable."

Without naming the expected occupier, the report suggests it will be a retailer of relatively expensive goods that people would often shop around for before buying.

The building has been vacant since Debenhams relocated to its flagship department store in Princesshay in September 2007.

Outline planning permission was granted in 2008 for a scheme to create around 100 luxury flats on the upper floors of the 10-storey block, above shops and restaurants. But regeneration specialists Urban Splash pulled out of the planned redevelopment last summer.

Since then the site has continued to attract interest from potential occupiers despite the recession, though no scheme to bring the building back into use has yet come to fruition.

Now, with the economy showing signs of recovery, major investment in the site is back on the agenda. It is not known if the current plans include residential use of the upper floors.

Richard Short, city council head of planning services, said councillors had resolved to grant planning permission for the scheme in 2008 subject to a Section 106 agreement requiring a proportion of affordable housing and creation of a car club for residents of the flats.

That legal agreement was never entered into, but could be revived. Depending on its plans, the new occupier would be expected to submit its own planning applications covering alterations to the building.

Mr Short said: "Since 2008 we have been in discussion with Land Securities about potential tenants. We do have pre-application discussions with a lot of potential occupiers of retail units and other developments, but these are treated as confidential until the application is made. We understand that Land Securities is in the process of discussions with potential interested parties, so we are reasonably confident that another tenant will come in."

Exeter Chamber of Commerce chairman Derek Phillips said: "We are delighted that at long last things are moving forward, because it's such an iconic building for Exeter."

Princesshay developer Land Securities has a long-term lease on the city council-owned building. A Land Securities spokeswoman said the name of the new occupier was expected to be revealed next month.