Benchmark Leisure, the firm behind the £150 million The Sands development, has confirmed that after months of speculation the prominent location is again actively under consideration.

There have been long-standing calls for an all-weather, up-to-date water park as a major attraction for residents and visitors.

David Rhodes, the firm's managing director, said: "There is a strong desire to build this attraction on the Atlantis site." This has been confirmed by Pauline Elliott, the council's head of regeneration and planning, who said: "An application will shortly be coming before the planning committee for leisure use on the site of The Sands."

Mr Rhodes added: "We are working with Scarborough Council and architects at the moment. There would be a variety of features which would provide a fantastic tourist attraction.

"The intention is to build a big facility which would be open all year round. It is still early days but hopefully we can start work soon."

Mr Rhodes described the collapse of the LEGOLAND Discovery deal, which had been earmarked for the site, as "a huge disappointment" but believed the water park would be bigger and better than the centre.

"But we have moved on and the water park is a brilliant replacement. It will have that wow factor which will attract thousands of people to Scarborough."

Cllr Tom Fox, leader of the council, said: "Nothing is definite yet but the possibility is being explored. We are also looking at bringing the building of the pool forward so it's not the last thing built. Things will be happening pretty soon but with discussions and planning applications it could be six months before we have a concrete plan.

"Obviously the design and building of the pool will take some time." When The Sands development started more than two years ago there were indications that a replacement for the existing nearby indoor pool would form part of the Atlantis site redevelopment. But other ideas included a site at the back of the old Marvels attraction and the Burniston Road car park.

Mr Rhodes has confirmed they hope to have the proposed 5,500 seat open-air theatre ready by next summer. He said: "Restoring the theatre has been something we wanted to do.

"If it gets the go ahead, we aim to start work later this year. We would restore the seating and there are plans to include a huge digital screen on the stage. It would be fantastic for Scarborough. Mr Rhodes said he was already in talks with an operator who was lining up top acts and shows for the venue.

He added: "It will attract some top events and shows but there would be smaller events as well. It would be a great asset for the town."

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