Mortlake’s historic Stag Brewery site which has been producing beer for more than 500 years will be redeveloped following a decision by drinks giant AB InBev to put the 21-acre site on the market.

The brewery, which sits near Chiswick Bridge, will be turned into a “high-density residential-led” scheme complete with restaurants, cafes and retail space alongside a museum and boathouses.

The Stag Brewery, which now produces Budweiser beer, began brewing commercially in 1700.

It was originally earmarked for closure in December 2010, but extensions were made to this timeline.

The site was finally placed on the market on August 14 and the brewery will officially close at the end of the year.

A spokesman from AB Inbev said: “We have recently concluded the collective consultation with our colleagues on-site at Stag Brewery who will continue to be treated with dignity and respect throughout the process.”

Alex Gillington, a partner at property consultants Gerald Eve, which is managing the sale of the site, described the location as “one of the capital’s most exceptional development sites” and said it was expected to generate considerable demand.

It is not yet known how many jobs will be affected.

Mr Gillington added: “The site’s flexibility represents a unique opportunity to create a new destination in south-west London, a new village heart for Mortlake that will radically transform the area with buildings and open public realm of the highest quality.”

The site currently includes 32,800 square metres of existing accommodation associated with the brewing process.

Councillor for Mortlake and Barnes Common, Paul Avon, said a lot of good groundwork and consultation has gone into the redevelopment plans and there has been plenty of time for concerns to be raised and addressed.

He said: “This is a unique opportunity to provide a new heart for Mortlake, but it has got to be right for the area.”