After 18 years of complex negotiations, an agreement has finally been struck over refurbishing Abingdon's Bury Street shopping precinct.

Work on a £1.7m cosmetic makeover of the rundown 40-year-old precinct is expected to start next year.

The agreement has brought to an end years of talks between freehold owners the Vale of White Horse District Council and property company Threadneedle, which leases the precinct.

The company will have to submit a planning application within the next four months and begin work within two years - or the deal will be off.

Under the agreement, the council and Threadneedle have a new financial partnership and will share future "risk and reward."

The council will continue to receive at least its current level of income from the precinct until 2011.

Council leader Jerry Patterson said: "After years of negotiating, we can finally look forward to a new look at the heart of Abingdon.

"The deal represents a sound investment for council tax payers, providing a good financial return as well as generating a fresher look for the precinct. It will make certain Abingdon continues to be a real market town that people will enjoy visiting."

Mr Patterson said the negotiations had been complex due to the nature of the site. The council had to be careful to ensure it got the best deal.

In turn Threadneedle wanted to secure the best deal for its investors.

Under the deal, the council will own the freehold on the former Queens Hotel, the corner site of the precinct which includes the coffee shop. Threadneedle has surrendered its existing 99-year lease - due to run for another 62 years - and this has been replaced with a new 150-year lease.

Chamber of Commerce president Jill Carver welcomed the news, adding: "After all the talking, let's get on with the job. An improved precinct is key to the future life of Abingdon town centre if we are to meet edge-of-town and outside competition.

"It will be an integral part of the regeneration of the centre, linking in with improvements to Stert Street, the High Street and Market Place which get under way next year."

Joint owner of the Gift Centre in the precinct Nick Cosford hoped tenants would be consulted over the re- vamp.

Abingdon conservative councillor Peter Jones said: "We're pleased that after so long something will be done.

"However, we're disappointed that the council has surrendered so much to Threadneedle. We don't believe it's the best deal."