Southwark’s cabinet has agreed to enter a cooperation agreement with British Land and King’s College London to work towards the development of a major new university campus and hundreds of new homes at Harmsworth Quays, the former Daily Mail print works.

The scheme is likely to include council homes towards the authority’s target of 11,000 new units.

“I think we also have the potential to deliver a new leisure centre for Rotherhithe,” said Cllr Fiona Colley, cabinet member for regeneration. The new centre – on Harmsworth Quays or another site – would replace the “crumbling” Seven Islands complex.

Cabinet is due to receive a further report in the spring.