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The inspector approved designs by South Hams District Council for up to 5,500 homes in Sherford Valley to the south of the A38 at Deep Lane, near Plymouth.

Evidence for and against the council's plans and alternatives for the new town of Sherford was heard over four months.

South Hams District Council will adopt the Sherford Area Action Plan at a full council meeting on 2 August.

The council says the first homes are expected on site in 2009.

The new town - which would be made up of smaller, linked communities - would provide at least 4,000 new homes by 2016, with capacity for up to 5,500 if needed.

Half of the homes would affordable for locals.

'Unequivocal support'

Inspector Nigel Payne considered alternative Sherford Refined plans by the Plymouth and South West Co-op and heard views from a range of groups on the council's proposals.

His 66-page report stated the council's Area Action Plan for Sherford was "sound" and more sustainable than the Sherford Refined plans.

He also approved Plymouth City Council's North Plymstock plan which connects with the South Hams proposal to enable cross-boundary planning for Sherford.

He said he was satisfied there had been "more than adequate information provided about and public consultation on the proposals".

A council spokesman said: "The inspector's report is unequivocal in its support for the Sherford plan. The next challenge for all involved is to see it take shape in line with this blueprint."