SAINSBURY'S supermarket is returning to Prestwich - five years after closing down.

The store will move back to the exact spot it occupied in the town in its heyday.

The company is the first retailer to be named in the controversial Radius development, with plans for a Sainsbury's Local store.

The mini-supermarket will take a new 20-year lease for the largest retail unit in the development, occupying almost 4,000 sq ft.

Its entrance will be situated in the same spot as the old store, facing the side of Prestwich Library.

Sainsbury's closed its doors after 20 years in the Longfield Centre in 2001, causing residents and businesses to predict the end of Prestwich as a shopping magnet.

A spokesman for Sainsbury's said: "We always wanted to have a store in Prestwich but our closure a few years back was down to not having the right store for the right location. Now we have an opportunity presented to us to create the right store for the right site."

When the closure was announced, the company said the store had made a steady loss for several years.

The spokesman added: "The store wasn't the right size and wasn't providing customers with what they wanted. There has been a lot of development and investment in Prestwich since then and this new development has provided the perfect opportunity for us to get a store back there.

"We identified the need for a convenience store in Prestwich and we are all very positive about it. It is a fantastic opportunity."

Sainsbury's hope to open the Local store next Spring, alongside Prestwich Pharmacy who will also be returning to the site after setting up a temporary base in Fairfax Road car park.

A third occupier of the development will be the Barracuda pub chain with a pub/restaurant on the ground and first floors.

Barracuda have a number of bars in Manchester and Bolton and have selected its Smith & Jones concept for Prestwich.

Situated to the right of the main residential entrance, the bar will take on a "genuine pub" feel with leather seating, mellow colour schemes and heritage inspired furnishings.

The pub will occupy the largest of the leisure facilities (5,200 sq ft) and agents say there is interest in the two remaining units.

The remaining six retail units have also attracted a lot of interest and are expected to feature well-known names, including a fashion chain.

The entire Radius development, which also includes 150 apartments and underground parking for residents, is due for completion in March, with tenants ready to fit out their units early in the new year.

Mark Chatham, director of Countryside Properties, said: "We are delighted that Sainsbury's are returning to the site after a long absence, with its new Sainsbury's Local format.

"Sainsbury's decision is an indication of the renaissance of Prestwich Village as an affluent retail centre with in excess of 900,000 people living within a 10 km radius.

"We are also in discussions with a range of other well known retailers and are confident of securing other leading brands by the time the scheme opens in Spring 2006."