It is feared the ambitious redevelopment will damage the resort's own regeneration hopes.

Now Blackpool Council is to object to the massive Tithebarn Project, which would see the resort's neighbour attract a flagship John Lewis store and further its vision of being the North West's third big city alongside Manchester and Liverpool.

Preston hopes building work will begin in 2010 in the Tithebarn Regeneration Area which incorporates the city's bus station and market area.

An "iconic" 19-storey tower, which includes hundreds of luxury apartments, shops and a health centre, could also be built by a private investor alongside the scheme.

But Blackpool Council says the proposed scale of the retail development is "potentially excessive and would result in significant detriment to the vitality and viability of Blackpool".

The resort is hoping for its own shopping boost with the opening of the £30m extension to the Houndshill Centre, including the new Debenhams store, in the middle of next year and is hoping to attract private investment to the £285m redevelopment of the Talbot Gateway.

Coun Maxine Callow, cabinet member for tourism and regeneration on Blackpool Council, said Blackpool was not acting selfishly in raising its concerns, but wanted to ensure development in all Lancashire towns and cities was proportionate.

She said: "I'm all in favour of competition and I firmly believe that when Debenhams opens up next year confidence will be restored in the town and other big names will come in.

"But there is only so much money to go round and this scheme does seem to be out of proportion. We're not just being selfish about this, we want the whole of Lancashire to prosper.

"If they (Preston) are going to go ahead with this scale of expansion someone is going to suffer.

Equivalent

"We do want investment in Lancashire, but we feel this scheme is too much."

Regional planning strategies state Preston, Blackpool, Blackburn and Burnley should all have broadly equivalent status in terms of attracting economic growth.

A report published in March 2007 into the Regional Spatial Strategy for the North West says the aim is to avoid disproportionate retail growth in any one centre "which might harm its neighbours and give rise to increased numbers of long distance shopping trips".

Preston City Council leader Coun Ken Hudson said he was surprised by Blackpool Council's stance, and its objection as part of the public consultation process launched after the Tithebarn plans were unveiled.

He said: "We backed Blackpool's supercasino bid and we were quite happy with the regional development agency putting resources into Blackpool.

"Part of that was Preston was to do the shopping, and Blackpool to do the tourism.

"We've tried to support Blackpool in its aspirations for regeneration and hope that as the central city region we can all benefit from the projected growth with funds from the Northwest Development Agency."

A new Marks & Spencer store – twice the size of Preston's existing one – up to 600 flats, restaurants, cafes, a health club and a hotel are being proposed as part of the 30-acre Tithebarn scheme being put together by developer Grosvenor.