Croydon could become the retailing capital of the south as shopping giants battle to takeover the Whitgift shopping centre in a move that could be worth hundreds of millions in regeneration.

Westfield, who built Europe's largest urban shopping centre in Stratford East London, are vying with Hammersons, who own Centrale in Croydon, to take over the centre.

A deal with Westfield could see North End transformed into a shopper's paradise potentially attracting millions more visitors to the town centre.

Their newest redevelopment Westfield Stratford City is a £1.45 billion development comprising 1.9 million sq ft of retail and leisure space as well as 1.1 million sq ft of office space and three hotels.

Westfield announced on Thursday it was in “exclusive arrangements” with the Whitgift Foundation to be the development partner for the site.

But any development will need to include proposals which occupies part of North End Allders in any move. Westfield favours large developments and the department store would offer potential additional space for any developments.

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 our borough.

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

And Croydon Business Improvement District (BID) interim chief executive Maria Chapman-Beer said: "The news that Westfield is in talks with the Whitgift Centre is a sign of increasing business confidence in Croydon.

"Croydon already has a reputation as one of the best retail Town Centres in the south and if this development goes ahead it can only improve Croydon’s standing in the ranks.

"We will watch the developments with interest but welcome any investment that helps regenerate the Town Centre and creates new jobs."

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."

On Friday, Royal London Asset Management, which owns 25 per cent of Whitgift's centre’s leasehold, said it was “surprised” to hear of the proposed move.

A spokesman said: "While we at Royal London are admirers of Westfield's London developments, we are aware of several other major shopping centre developers similarly capable of delivering an excellent scheme in Croydon.

"To achieve the best possible outcome for all stakeholders, we are continuing with the ongoing process of identifying the most appropriate partner with which to move the development forward and are excited by the opportunity that this presents."

It emerged on Monday that Hammersons might be their preferred partner, but the firm remained tight-lipped.

A spokesman said: “As an investor and owner in Croydon with the purchase of Centrale Shopping Centre we believe the town has a great consumer catchment with room for retail growth.

“We are confident about our plans to improve Centrale and have a real desire to enhance Croydon’s retail credentials and create a destination with new catering and leisure facilities for families to enjoy.”

Other retailing developers have expressed interest including specialist developer Capital Shopping Centres, while the listed property company British Land, and the Australian developer Lend Lease are also in talks, along with Meyer Bergman and Area.

Click here to read the thoughts of Croydon Councillor Tim Pollard in his column, exclusively in your Croydon Guardian e-Xtra e-newspaper