The dream of a new £35 million canal from Shipley to Bradford which would create thousands of jobs and homes is set to take a step towards reality.

Bradford Council's executive committee is expected to approve the plan next week after a feasibility study by consultants Arup concluded the canal plan could work and would bring massive benefits to the district.

Members will be told by director of regeneration Patrick Wiggins the joint venture between the Council, Bradford Centre Regeneration and British Waterways could attract private-sector investment of up to £470 million, create 5,900 jobs and up to 5,000 new homes.

The new canal would begin at the junction of the existing Shipley and Leeds-Liverpool canals where a hump-backed bridge is situated at Regents Mill, Dockfield Road, Shipley, It would basically follow the old waterway, which closed in 1922, and end in a basin at the heart of a planned £350 million waterside village near Forster Square.

The new canal would be fed from a major water feature outside City Hall and be supplemented by groundwater from bore holes. And the City Hall lake would in turn receive its supply from a cleared-up Bradford Beck.

The Council's executive member for regeneration Councillor Simon Cooke said officials hoped the plan could be done without much cost to council tax payers.

"Most of the land at the Shipley end is already in Council ownership and there would be very significant private investment," he said. "This is one of the most exciting proposals Bradford has been involved in for a long time."

He said the scheme would revitalise many empty and derelict buildings including historic Conditioning House which would be on the waterside if the project reached fruition.

Arup have said it will not be possible to bring the new canal right into the city but a series of water features could lead to the City Hall lake.

Chief executive of Bradford Centre Regeneration Maud Marshall said the canal would play a key role in taking forward the masterplan for the city created by top architect Will Alsop.

"It will bring significant benefit to the regenerated city centre and extend those benefits from the centre out to Manningham and Airedale," she said.

Mr Wiggins said the district could benefit from £470 million-worth of investment in waterside development and the entire scheme could be worth £1 billion. He said it could bring 80 canal construction and maintenance jobs and 1,200 jobs on waterside development.