The attraction, based on the famous London Eye, will be set up mid July at the top of Fargate.

It was approved at a meeting of Sheffield Council's planning board yesterday despite concerns from one retailer who said it could put off some shoppers because it could reduce the size of footpaths.

The representative from Republic, which has just opened in the former Zavvi premises - was also concerned it could become more vulnerable to burglary, as those on the wheel could see inside its offices.

Nigel Ward, of operator World Tourist Attractions, said: "It will attract families and young people, which the retailers of Fargate are trying to attract."

Mr Ward added similar wheels in other towns and cities had been very successful.

He said the wheel in Belfast was voted the Northern Ireland capital's Attraction of the Year in 2008.

And a wheel at the National Railway Museum in York, led visitors to choose the city as a tourist destination over Leeds.

Of the proposed site in Sheffield, Mr Ward said: "We believe our graceful, elegant design will fit in with the area and distinguished architecture."

Richard Eyre, Sheffield city centre manager, said: "The observation wheel is based on the London Eye."

Councillors were concerned that when combined with other rides on Fargate on special occasions such as Fright Night, it could "turn the upmarket street into a fairground".

But Mr Eyre said any fairground rides would be at the other end of Fargate.

Sheffield Council planning officers conceded there would be less room for pedestrians but added space could be created by moving the stone seating.

Other locations had been considered but were found to be unsuitable, they added.


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