A historic barracks site in Brighton could be used to provide hundreds of new jobs.

Brighton and Hove City Council is negotiating with the Ministry of Defence to buy part of Preston Barracks, off Lewes Road.

Up to £3 million from the Government's Single Regeneration Budget will be available for the purchase if it is agreed.

The site is seen as a key employment location for a mixed-use development.

Culture and regeneration director Sarah Tanburn said the intention was to provide a mixture of housing, industry and shopping on the site.

Some retail is essential because the value is high and the ministry will not consider selling without it.

Ms Tanburn said it would be restricted and there would be no large retail warehouses.

She said any industry would be hi-tech and linked to Brighton University.

Ms Tanburn added: "We believe we can provide serious hi-tech jobs on this site."

The barracks were established more than 200 years ago but have been vacated during the last 30 years.

For many years, the old Brighton Council wanted the whole site to be used for affordable housing but this did not prove possible.

Affordable housing was provided only at the southern end of the 20-acre site through the Saunders Park estate.

The Pavilion retail park was also built on parts of the site with stores including Halfords and B&Q.

A council spokeswoman said negotiations had reached a delicate stage with the ministry.

She added: "We hope to be able to conclude them before the end of the financial year."

Brighton and Hove has a shortage of good employment sites because it is locked between the Downs and the sea.

Tory regeneration spokesman Geoff Wells said: "I would like to see a mixed development on the barracks site.

"We are short of industrial sites and if there is retail there it should be limited because it doesn't provide many jobs and the shops opposite are struggling."