Plans for an upmarket shopping area in Oxford city centre are being unveiled today.

The multi-million-pound scheme will see the regeneration of a large eyesore site behind St Aldate's and Queen Street.

The shopping arcade would run from St Aldate's Tavern to the back of the Marks & Spencer store.

Developers promise small shops with a pedestrian route and archway linking the new shopping area to Queen Street.

With plans going on show this weekend, the developers say the scheme will be designed to complement the nearby Westgate Centre, which is due to be revamped in a £330m redevelopment.

Ed Turner, deputy leader of Oxford City Council, said: "This is an exciting scheme that will improve the city centre both visually and as a shopping experience."

As well as creating 12 new shops, the scheme also includes offices and student accommodation for up to 100 undergraduates.

The city council's St Aldate's Chambers building will be demolished along with three shops on Queen Street, next to the Abbey Building.

The rear of the Bradford and Bingley offices and of the Blacks store will also be demolished. One of the new retail units is expected to adjoin the back of the Marks & Spencer store.

The plans are being put forward by the Carlyle Group, which specialises in city centre regeneration.

A spokesman said: "Historically, Carfax has been at the crossroads of Oxford's economic activity.

"For centuries, the thoroughfares of St Aldate's and Queen Street have played an important part in the commercial life of the city. Carlyle wants this economic hub to grow in the 21st century.

"This will be a smaller, more individual shopping area. It will complement, rather than compete with outlets in the new Westgate complex.

"With well-known national retailers likely to take up some units, smaller shops should be of an individual boutique variety."

The developers are aiming to open the new shops early in 2011. And with an entrance to the arcade in Queen Street, the development is certain to reignite calls for buses to be taken out of Queen Street.

Mr Turner added: "It is pleasing that the Carlyle Group is confident enough to want to progress with this in the current challenging climate. It goes to show that Oxford is still regarded as a powerful retail centre.

"It clearly makes pedestrianisation an even more attractive idea.

"But this is tied in with the development of Westgate."

The news will give city traders a much-needed boost as it emerged last week that the Westgate redevelopment faces more delays.

Already put back until 2012, the Westgate Partnership said both financing and timescale are being reviewed.

The architects behind the new arcade, Aukett Fitzroy Robinson, say they have been studying other shopping areas in the city, particularly the Golden Cross, an arcade created nearly 20 years ago linking Cornmarket and the Covered Market.

A public exhibition is being held at The New Road Baptist Church, Bonn Square, on Saturday from 11am until 2.30pm and on Thursday from 11am until 7.30pm.