A 1970s car park above The Pallasades shopping centre is to be demolished in May as a key part of the multi million pound redevelopment of New Street station.

The new transport hub will be moved to the site of the old NCP facility, with the flagship John Lewis department store built next door where the former Stephenson Tower flats were.

The car park will close on May 18 and will be replaced with a new one that will complement the overhauled Pallasades and John Lewis, all set to open in 2014.

Work on the Birmingham Gateway project is on schedule and the first phase will be open at the end of this year when a new concourse, three-and-a-half times bigger than present and enclosed by a giant, light-filled atrium, opens for passengers.

Chris Montgomery, project director for Network Rail, said: “We apologise for any inconvenience the closure will cause but the existing car park has seen better days so demolishing it and starting again is the only viable alternative to allow us to deliver an improved, modern facility for the city.”

Jonathan Cheetham, general manager of the Pallasades, added: “The outcome will be a modern and safe car park with all the facilities to be expected, which will reflect the look and feel of the new shopping centre.”

The Gateway project is funded by Network Rail, Birmingham City Council, Department for Transport, Advantage West Midlands and Centro. A project team of Network Rail, delivery partner Mace, consultants Atkins and architects AZPA, is managing delivery.

The redevelopment will double passenger capacity, improve access and provide better pedestrian links across the city, with eight new entrances. It is due for completion in 2015.

Birmingham New Street is the busiest train station outside London, operating more than double the amount of services the existing station was designed to handle.

It will be more accessible and brighter and platforms will be serviced by more than 30 new escalators and 15 new lifts.

Outside, there will be a modern façade.