Multi-million pound improvements to Odsal's infamous tip are set to go ahead, despite the collapse of the £60 million scheme to redevelop the site.

Government regeneration agency Yorkshire Forward has earmarked cash to help fund the work which is expected to cost around £7 million.

The improvements to the site - which residents fear contains chemicals and asbestos - would make the site a more affordable and attractive location to developers.

And, if the clean-up gets the go-ahead, it would be a major boost to locals such as John Tiffany, Margaret Jarvis and David Paget, pictured together, who have long campaigned for improvements to the tip.

Environment bosses admit that household and chemical waste from across Bradford was dumped at the site, unregulated, for more than 30 years.

Today campaigner David Warburton, who lives on nearby Rooley Crescent, said it was "great news".

It had been feared the collapse of a £60 million project to redevelop Odsal - due to include work on the tip - would dash hopes of the work taking place.

"It would be excellent if the people of Bradford did not have to stump up the cash for these works which we have long known are needed," said Mr Warburton. "Making this tip safe has to be an absolute priority. No-one knows what is in there and no-one knows what contamination it is causing."

It is understood Yorkshire Forward has guaranteed to bridge any gap in funding for the project which is vital to the success of the South Bradford Transport Plan which is due to be completed by 2006. The plan includes the provision of a park and ride facility at Odsal to connect with the new guided bus way into the city centre.

It is planned to build a car park close to Odsal Stadium, partly covering the tip, which was closed in the 1980s.

The funding pledge is also good news for hopes that a new stadium development could yet get the go-ahead at the Odsal site.

Today Bradford Bulls chairman Chris Caisley and Bradford South MP Gerry Sutcliffe welcomed Yorkshire Forward's intervention.

Mr Sutcliffe said: "This is investment that has been needed and should clean-up a long standing problem. The residents have been very concerned and this is also a good thing environmentally."

Mr Caisley said it was "very good news". He said: "This is very important work that simply has to be done, and I understand it was always the Council's intention to seek some assistance with the funding," he said.

A spokesman for Yorkshire Forward confirmed the Odsal tip improvements are included in the - as yet unpublished - sub-regional action plan for West Yorkshire.

He said: "We need to sit down with all our partners, including Bradford Council, and see where this fits in to our schedule. We have put this in our plan and agreed to help bridge the funding although we cannot guarantee a blank cheque."

Mr Caisley is still locked in high-level talks with the Council about a pay-off - possibly worth as much as £5 million - to sever the long-standing contract between the Council and the Bulls.

If that deal is concluded, the contract which sees the Council pay the Bulls £300,000 per year to play at Odsal would be torn up, and the money could be used to fund a new development.

But today Mr Caisley raised fears the Bulls may not be allowed to build on land outside the confines of the existing stadium which they almost certainly need to use for a development to help fund any new stadium.

Mr Caisley confirmed the club had been in talks with possible partners for a new development, but stressed he needed guarantees from the Council before further progress could be made.

"We have talked to a number of people about the possibility of developing the site," he said. "However, one of the difficulties is that our rights of occupation do not extend over the whole of the site which was originally earmarked for development."

He said negotiations were on-going to reach an acceptable financial settlement or deal which would guarantee the long-term future of Odsal.

A Council spokesman stressed that the proposed park and ride and guided bus scheme should not hamper any proposed development at Odsal.