Croydon could soon become home to Westfield's third shopping centre.

It was confirmed this morning the Australian developer have entered into a deal with the Whitgift Foundation, to become a development partner at the site.

It is understood Westfield hopes to acquire most of the leasehold for the North End site, which is currently controlled by Anglo Irish bank, in addition to other land in the area.

The company said the strategic location of the Croydon centre could attract 3million customers, because of links to Gatwick airport, Surrey, Kent and Sussex.

Westfield said the new centre would be of great benefit to the area, which it says is "under-served by high quality retail and leisure facilities.

Michael Gutman, Westfield's Europe managing director, said: "There is the potential for a major retail scheme in this strategic market which has been identified in the past by the John Lewis Partnership as a possible key location.

"The local authorities have very high aspirations to implement a major retail scheme and the regeneration of the town centre."

Westfield already have two major shopping centres White City and in Stratford, East London which opened in September.

Council leader Mike Fisher said: "Westfield's proposed investment is the latest exciting development for Croydon and a further sign of the growing business confidence in out borough.

"It sends a very strong signal that we are on course and on our way."