New plans were put forward by architects and housing developers after an extensive consultation weekend with residents.

More than 800 homes are planned for the site, which will become a new village with its own shops, a school, art and cultural facilities and transport links.

It will also retain some of the iconic Graylingwell features such as the water tower, old farmhouse and farm buildings, the chapel and the well.

English Partnerships, the national regeneration agency, bought the land from the NHS, which still uses some of the buildings for administration and residential purposes.

It appointed developer Galliford Try to take charge of the project, which is expected to start next year.

Architect John Thompson and Partners has also been involved with initial phases of drawing up the masterplan.

The challenge is to build an eco town with zero carbon homes, which means the carbon dioxide emissions from uses around the house, such as washing machines or heating, are zero or better.

The government has said all new homes built in England will be zero carbon by 2016. This makes Graylingwell one of the pioneers of the scheme.

To reduce the carbon footprint, the houses will have improved insulation, rainwater harvesting systems, specific building materials and, during construction, a management plan will reduce waste.

The new village will provide 40 per cent affordable homes, including social rented and shared ownership housing which will be spread around the 36 hectare site.

As well as renovating the old features, some of the existing administration buildings in the horseshoe around the water tower will be transformed into flats, apartments and houses.

The old theatre will be removed to create a new pedestrian route from the well to the University of Chichester and St Richard's Hospital.

The site will still keep plenty of open space as Havenstoke Park will be retained. Other open spaces include new allotments with orchards, and children's play areas.

Transport links will connect the site to many areas around the city.

Pedestrian and cycle routes will be built, linking Centurion Way, Brandy Hole copse, Rousillion Barracks, River Lavant, Goodwood, Summersdale, Swanfield, the University, St Richard's Hospital and the city centre.

A bus route through the site linking it to the city centre and Sainsbury's could be introduced.