The plans, unveiled today, include an £11million sports facility, a top hotel and conference centre and new student accommodation.

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It will also see the creation of a University Square, with traffic calming measures being introduced on Chester Road in a bid to bring the two sides of the campus together.

The long-term hopes for the site include pedestrianising the bottom stretch of Chester Road, running through the university, which bosses say would forge the campus together and create an extension of the city centre.

Professor Peter Fidler, Vice-Chancellor of Sunderland University, said: "We are committed to ensuring that our current and future students receive the best possible experience.

"This vision for our City Campus, I am sure, will help us achieve that. Equally, staff and the community will also enjoy these fantastic new facilities.

"This latest phase in our long-term development highlights our commitment to our students, our community, our city and our region."

The flagship £11million CitySpace sports and recreation centre will be the first part of the development to be built on Chester Road to replace the Wearmouth Hall building, which was demolished last year.

The centre is expected to be completed in 2009, and will feature a six-badminton court sports hall, 70-station fitness suite, sports massage and injuries centre, indoor climbing wall.

It will also include retail, social, catering, leisure and exhibition spaces.

The development will complement the award-winning Sir Tom Cowie Campus at St Peter's, and build on the success of redevelopment work already completed on the City Campus.

The Edinburgh Building, The Gateway and Murray Library have already had major facelifts.

Later phases at Chester Road include plans for a 200-bed high quality hotel and conferencing facility on Hind Street, and a 400-bed student accommodation block development on the City Campus.

There are also future plans to improve and refurbish the Sir Tom Cowie Campus.

University bosses say the university has always played a major role in the prosperity in the city and said the institution's "civic vision" that was an important factor in the development process.

The University is also heavily committed to other civic partners and projects in the city.

They include Sunderland Software City – a plan to establish a vibrant software industry in Sunderland - and the vision for the £300m film studio in Seaham.

The £75million development launched today has been seen as a considerable contribution to the ongoing physical regeneration of the city.

David Walker, Chief Executive, regeneration company Sunderland arc said: "This is fantastic news for Sunderland.

"The university is one of the city's greatest assets and we will continue to support its growth as part of the ongoing regeneration of the city."

"Having a top class range of facilities will help to attract and retain students and ensure we have a workforce with the right skills to drive the economy of the city forward."

In-coming council leader Paul Watson said: "These are major developments at a landmark site and will be welcomed by everybody who has an interest in Sunderland's future.

"The University of Sunderland has always played an important role in the city and this "new" campus will enhance the student experience, be a boost for the wider community of Sunderland and the continuing
regeneration of our city.

>> More in Friday's Sunderland Echo