Crichie Developments, led by Dandara, is looking to build 737 homes, a primary school and retail development at Crichie, which is just outside the Aberdeenshire town.

The Evening Express has reported that around 184 of the homes could be affordable.

Council planners asked members of the Garioch area committee to approve the proposal in principle under a delegated grant as far back as last January. This approval meant planning officers were given the power by councillors to approve the application after a legal agreement was made.

The local authority has now given its official approval after it signed a legal agreement with the developer to secure conditions for the development including a new grade-separated junction.

It is understood Dandara will apply for full planning permission at a later date.

Included in the development is space for a primary school, housing and business developments, with cycle links into Port Elphinstone and Inverurie.

In a decision notice, Aberdeenshire Council’s head of planning and building standards, Robert Gray, said: “The proposed development accords with the development plan and there are no material considerations which indicate that permission should be refused.”

He added: “No more than 300 residential units, and no other buildings on the site, will be completed until a new grade-separated interchange (GSI), replacing both the existing Port Elphinstone and Thainstone roundabouts on the A96, and an underpass at the site of the current Port Elphinstone roundabout, to carry the B993 Kemnay Road, have been constructed and are available for public use.”

He added: “The GSI and underpass will be in full accordance with details of position and design that shall be submitted to, and approved in writing by, the planning authority, in consultation with Transport Scotland.

“For the avoidance of doubt, the construction of the GSI and underpass is not approved by this planning permission in principle, and shall require a separate express grant of full planning permission.”