A new pool could be built in Coulsdon after the council revealed it was in talks with a supermarket chain to Lion Green Road car park.

The council says it is close to finalising a deal with the undisclosed supermarket to develop the 2.5 acre site to create 120 houses, a 3,500 sq ft supermarket, a gym, a 25m pool, four-court sports hall and parking for up to 300 vehicles.

Coulsdon library could be relocated to the car park and a community centre built on the land as part of the scheme.

Cabinet member for regeneration, Councillor Tim Pollard said: "Opening of the relief road has given Coulsdon a new impetus.

"We want to maintain the momentum with the enterprising development of the car park site.

"Feasibility studies show it would be attractive for the commercial elements which, in turn, would pay for the pool and for the first time bring a public swimming facility within easy reach for large numbers of people living in the south of the borough."

German supermarket Aldi submitted two applications to redevelop the pub site which were either rejected or withdrawn.