Derby development firm Clowes Westerman has submitted a planning application for the site off Nottingham Road, due to be determined by Amber Valley Borough Council.

But residents claim the scheme would create access problems on an already busy road, cause a loss of amenity and an invasion of privacy.

The residents want a bypass built from the Codnor Industrial Estate to the Sainsbury's roundabout on Nottingham Road.

In May, Liverpool firm Braidwater Ltd offered to stump up cash towards the raod scheme in return for land it also owns off Nottingham Road getting planning permission for a massive retail park. It has yet to submit an application.

Residents say they will fight Clowes' latest application – a previous plan it submitted for the site was turned down on the grounds of road safety following a report by the county council.

The new plan includes traffic lights near Brickyard Lane in a bid to help traffic flow.

Resident Janet James said: "We're not against the buildings going up. We're against the traffic coming off our road. The junction would be right outside our home. The traffic lights would shine into our bedroom windows and stopped traffic could look right in.

"We just want the bypass; if we had that they could build the industrial estate."

Lavenia Wray, another resident, said: "If we have traffic lights there it will be like sleeping in a disco – it really would be horrendous."

Council chief executive Peter Carney said: "We are currently involved in detailed and complex negotiations regarding the potential development of land at Nottingham Road.

"The details are commercially sensitive, and to publicly comment on them at this stage may prejudice the negotiations.

"We are actively looking to address the residents' concerns as part of our negotiations."