But the planning commiteee has made it clear its support is on condition that the landowner, the Fitzwilliam (Malton) Estates, carry out an archaeological evaluation of the site first.

So far the Estate has resisted doing the assessment before its application has been determined because of the cost of digging up and reinstating what is a public car park.

A desk-based evaluation has been done and this showed a high potential for Roman remains and a "medium" potential for mediaeval and post-mediaeval remains.

Ryedale Council's planners recommended the scheme, which when built would involve the loss of 16 car parking spaces, should be approved in principle subject to the findings of an archaeological investigation.

But in its letter to the planning committee Malton Town Council said the application was premature and should be deferred until a strategy for further development of the Market Place had been agreed.

And Cllr Lindsay Burr was uhappy with the scheme because it would restrict access to the Milton Rooms, an important social facility in the town centre as well as to the car park and businesses at the back of the Market Place.

And Cllr John Raper said Malton had ignored its historical past for too long and had failed to cash in on its huge potential.

He said: "The archaeology must come first. Until we find out what is there and what can be gleaned from it for the benefit of the whole community nothing should be approved."

But Cllr Howard Keal said the application was "inspired" and showed "fantastic attention to detail", and added: "This is a nod towards the attractive envoironment we're looking for. We have a chance to get on and improve the appearance of the town and I hope we will seize it with both hands."

The council supported the scheme in principle but if the archaeological assessment was not carried out, it would be deemed refused.