When the Arla Dairy closed in 2004 with the loss of 280 jobs, speculation was rife about its future.

Residents living nearby claimed it would become a supermarket, industrial estate or new homes.

Now it has been confirmed that it will be earmarked for housing, with up to 165 properties built over the next five years.

It's understood that a developer has now been found for the site off School Lane.

South Ribble Council has said it expects a planning application to be submitted for the site within the next six to 12 months.

Officers from the council's planning department were due to discuss potential options.

Coun Cliff Hughes, cabinet member with responsibility for regeneration and planning, said: "The former Arla Foods site has potential for development. It has been unused for almost four years, so we would welcome an application to revitalise the site.

"The site is recognised as having the potential to accommodate a significant number of new houses, but obviously this would be subject to an applicant coming up with a suitable proposal in accordance with planning legislation.

"As yet no such application has been received, but our planners will be meeting the owner this week to discuss the potential for this site and we expect we will receive a planning application within the next six to 12 months."

The site, which processed two million litres of milk a year, was closed by Arla in June 2004 as part of a 'review of operational efficiencies' following its merger with Express Dairies.

Since the plant shut, workers have removed the glass bottling equipment, and chimneys which once dominated the local skyline have been demolished.