Supermarket giant Tesco has agreed to sell a former brewery site in Sunderland following a long-running dispute over the land.
Tesco bought the former Vaux site in 2001, but has seen a number of attempts to build a superstore blocked.
Agreement has now been reached in principal for regeneration agency One North East to buy the land.
Tesco said it will instead focus on its plans for a store at Sunderland Retail Park in Roker.
More than 300 people lost their jobs when the family brewery closed in 1999 after 162 years.
The 15-acre site has been empty since, and is considered by many to be an eyesore.
'Spirit of partnership'
Paul Watson, leader of Sunderland City Council, said: The development of the site is still some way off and it's vital for Sunderland's future prosperity that we get it right."
Doug Wilson, corporate affairs manager for Tesco, said: "We have been working closely with Sunderland City Council and other public sector bodies to resolve the status of the Vaux site and this agreement reflects a new spirit of partnership between us.
"Tesco remains committed to making a major investment into the city and today's announcement is a significant step towards making this happen."