Morrisons today took its first major step since taking over Safeway by announcing the sale of a package of 19 stores to supermarket rival Waitrose.

The deal includes the disposal of 18 former Safeway stores including the one in Westgate, Otley, plus the Morrisons store in Southport.

Waitrose were always favourite to snap-up the biggest package of the 52 stores that Bradford-based Morrisons is required to sell under the terms of its takeover of Safeway.

The condition was imposed by the Office of Fair Trading (OFT) following an investigation into the merger last summer. The offer from the Berkshire-based group had been favoured by Morrisons bosses.

It is thought Waitrose, part of the John Lewis Partnership, was seen as less of a threat because of its relatively small number of branches which are focused in the south of England.

"Today's announcement is a major step forward in our work to integrate the two businesses," said Morrisons joint managing director Bob Stott.

"The contract is subject to the approval of the Office of Fair Trading, and formal discussions with the OFT have commenced."

A spokesman for Waitrose said the deal marked a "major breakthrough" for the firm which had been "keen to expand outside its current trading area for many years".

He said work would start as soon as possible into transforming the Otley store.

Mark Price, director of selling and marketing at Waitrose, said: "Our aim has been not just to provide quality products at competitive prices, but to make shopping an enjoyable experience.

"We look forward to welcoming customers to our new delicatessen, cheese, wine, patisserie, meat and fish counters."

Once the deal is approved, all staff who worked at the Safeway shops will be offered posts at Waitrose, where they will become partners, or co-owners of the business.