And Next also confirmed it was bringing a Home store to the retail park — as revealed by the Tele in May.

Politicians and business leaders in the city today greeted the moves as further signs of improving economic conditions.

Homeware and soft furnishing company Dunelm have agreed terms to take over the former premises of MFI at the site, while Next are advertising the opening of one of their Home stores.

The Dunelm plan, which is dependent on receiving planning permission for the creation of a sales mezzanine, would create between 55 and 70 jobs.

Carole Brown, head of marketing, confirmed the move.

“We have agreed terms to take the former MFI premises at the Kingsway West Retail Park in Dundee,” she said today.

“The deal is conditional on obtaining planning consent to install a sales mezzanine within the premises and an application has been submitted by the landlord in this regard.”

Although she said it was too early to give details on the number of jobs that would be created, she did confirm the plan was for a “superstore”, which generally employ between 55 and 70 people.

Meanwhile, posters announcing the arrival of a Next Home store in February, 2010, are being displayed on vacant premises at the retail park.

A spokeswoman for Next confirmed the opening, but said it was too early to say how many jobs would be created.

Alan Mitchell, chief executive of Dundee & Angus Chamber of Commerce, said the plans were an “obvious” sign of increasing confidence in the economy.

“It is certainly something to be welcomed,” he said. “When companies decide they are going to open new stores and invest in an area, it is an obvious sign of increasing confidence in the economy and the business prospects of the local area.

“Dundee has established itself as a more attractive retail destination in recent years, and this is further evidence of that.”

Councillor Will Dawson, convener of the city development committee on Dundee City Council, added, “The news that two of the country’s leading retailers are both planning to open stores at Kingsway Retail Park in the coming months is a positive sign that they see a viable market and a future in Dundee.”

Dunelm has almost 100 stores across the UK, including in Perth and Kirkcaldy.

The MFI store closed in December last year when the firm went into administration.