The new £35m, 150,000sq ft of retail and restaurant space, with an additional 600 space multi-storey car park, looks set to receive the go-ahead from planners.
The new phase subject to final approval is expected to commence in 2012 with completion late 2013.
It is hoped the project will create in the region of 200 jobs during construction and 300 full and part time retail and associated jobs on completion.
Dr Gerard O'Hare, owner of The Quays, said: "I am delighted that the application is to be recommended for approval by the Department. This will allow The Quays to offer a further new and exciting phase to its customers.
"Of course it will remain difficult to deliver these plans in current market conditions and impossible without certainty of demand but I am delighted to announce that with half of the space already reserved we have very good reason to be optimistic".
The development of the phase at the complex will be situated on the existing site at the centre and will be linked to the present mall via a glass covered bridge.
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