BARCLAYS House has found a new home in Poole after announcing a preliminary agreement to develop and lease a new 100,000 sq ft building in West Quay Road.

The news was announced to staff at the company's offices in Wimborne Road yesterday.

It comes just a week after Barclays announced that it would be shedding 1,000 jobs in order to downsize and restructure the Poole operation.

The new site, which is subject to signing an agreement to lease and receiving planning permission from Poole council, is a short distance from the current offices.

It has put to rest the suggestion that Barclays could move to Cotlands Road car park, Bournemouth, or even leave the area altogether.

The bank is thought to have been wrangling with Bournemouth council over the value of the car park.

Poole council leader Brian Leverett, welcomed yesterday's announcement. "This is a vote of confidence by a major business of international standing and continues the close relationship which Poole council has had with them," he said.

A spokesman for Barclays House, said: "We are committed to the area and have always said that. It is expected that approximately 850 permanent employees will occupy the building in 2010."

Steve Pantak, a spokesman for Unite the union that is part of Amicus, said: "As far as the building is concerned we are delighted it is still going to be in Poole.

"The fact that it is going to be in the shadow of the existing building will takeaway the concerns of existing staff.

"We are very concerned at the large reduction in staff and will be looking at monitoring the process over the next two to three years."

It is not yet known what will become of the existing nine-storey tower, which was opened in 1976 and is home to 2,500 employees, including contractors and temporary staff.

Cllr Stephen MacLoughlin, leader of Bournemouth council, said: "We are disappointed to learn of Barclays' decision.

"Bournemouth council has been working closely with Barclays and had hoped Bournemouth was seen as a good place to do business.

"We wish Barclays success with their project and if operations expand we would welcome the opportunity to talk to them about their future requirements."