A derelict port could become the "Docklands of the South Coast" under multi-million pound plans to redevelop the quayside.

Landowner Oakdene Homes has announced plans to continue its programme of regeneration in Newhaven once its current phase is finished next year.

It will create a marina with facilities for 250 boats surrounded by around 500 waterside apartments.

Architect firm Morgan Carn Partnership has been commissioned to draw-up the latest stage of the plans, which will take in West Quay and Railway Quay.

Partner John McLean said: "In five to ten years people could be fighting to get a home here.

"When these schemes are built there will be a real buzzing environment on a south-facing river you just don't get that in Brighton, Eastbourne or Lewes. And with the house prices they will come.

"We've got the vision and when people see what's built this area will really take off."

Oakdene bought the land from Sea Containers last year and has already completed the first phase of redevelopment with housing on the west bank.

The third phase plans include a new hotel with a rooftop restaurant at Railway Quay and six shops. Two listed buildings, Marine and Carpenters Workshops, dating back 150 years, could become bars and restaurants.

They will open up to a viewing area and 370 metres of waterfront which will be made accessible to the public for the first time.

The popular riverside walkway and cycleway will be extended to link to Newhaven Fort.

First developers will need to decontaminate the river from industrial pollutants dating back to the 19th century and carry out flood defence works to safeguard new homes and businesses.

Mr McLean said: "The Railway Quay has been derelict for years and it is so expensive to redevelop we have to make good use of the land."

He promised bold, fresh and modern architecture, adding: "We're not trying to do a pastiche of Edwardian or Victorian architecture in Newhaven.

"We're trying to regenerate the town."

A two-stage planning application is expected this summer.

This week a public exhibition will be held for people to view the plans and make comment. It will take place on Wednesday, Thursday and Friday at Denton Island Learning Resources Centre in Newhaven.