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Cardiff council leaders have decided to buy eight acres of largely derelict industrial land near the River Taff in a fresh bid to redevelop the area.

The purchase is part of a plan to regenerate the site on Dumballs Road, Butetown, with new and affordable housing with private investor Vastint.

Cabinet members made the decision at a meeting near the site on Thursday.

A previous regeneration scheme for the area was deemed by council financiers to be "unaffordable".

In a for the cabinet, the council's director of economic development Neil Hanratty noted that Dumballs Road had "suffered numerous unsuccessful attempts at redevelopment over the last three decades".

Vastint - part of the same group as IKEA - plans to buy 24 acres (10 hectares) of land.

The council said the company would work with the authority to develop a new planning application for the site.

Cardiff council leader Phil Bale added: "They want to work with us on delivering the Embankment site and will only proceed in partnership with us.

"If this goes ahead it could be the final piece in the jigsaw which would see the east side of the riverbank from the stadium to the Bay completely redeveloped."

Mr Bale said the total spend for the council was around £15m.

Andrew Cobden of Vastint said: "The opportunity to acquire a large land parcel in the centre of a well-established and growing capital city is exciting for Vastint and fits with the planned expansion of activities in the UK."

As well as housing, the developer may provide commercial business space.

Permission already exists for more than 2,000 new homes, 12.5% of which is designated as affordable housing.