Up to 250 jobs are being created in a major boost to Leicester's regeneration plans.

Training agency Learndirect is expanding its national hub in the city as part of a Government push to improve skills.

The body will move into One Colton Square, off St George's Way, in the city centre's biggest office letting deal in a decade.

Business leaders said it highlighted the need for further office development in that part of the city.

Learndirect, which helps users via telephone and the internet, has run its operation for England from offices in nearby Waterloo Way for ten years.

The 40 staff working there have transferred to the new offices in the past two weeks, with another 50 posts created.

The other 200 jobs will be added over the next 12 months.

Learndirect spokesman Adrian Beddow said: "We decided to make this investment in Leicester because we already had a major operation here.

"Leicester's central location and availability of good people also had an influence on our decision."

Gill Craven, from Learndirect, said the expansion would allow the service to help more than 150,000 learners currently supported each year. She said: "In the current climate, people have to keep improving their skills and we want to make it easy for learning to fit around their lives."

David Hughes, chief executive of job creation agency Prospect Leicestershire, said: "This is the biggest single letting in the city centre for a decade.

"It shows that if you build quality office accommodation near the railway station, you will attract investors."

The ten-year lease means that more than three-quarters of the 85,000sq ft Colton Square development – once home to Charles Street police station – is now occupied, employing more than 400 people.

A proposed second phase of the business quarter, close to the railway station, would create up to 2,000 jobs.

However, plans to clear a site for the development, which involved £9 million from East Midlands Development Agency, have been thrown in the air by the rethink over Government funding.

City council leader Veejay Patel, said: "Leicester is an established university city but it's now becoming a hub for online learning too.

"I'm delighted Learndirect has expanded its base in Leicester and warmly welcome the new jobs and opportunities that will be created for local people."