The fund is distributed by the ODPM to the 88 most deprived wards in England and administered by local strategic partnerships .
It had been due to expire in April 2008, at the end of the current spending round.
However, ODPM officials hope the extension of the fund will get the go-ahead when the chancellor unveils his spending plans for the three years to 2008.
The Treasury was due to announce the date of the review as Housing Today went to press, but it is understood to be in the last week of June.
An ODPM source said: "It is not unreasonable to assume that the neighbourhood renewal fund, perhaps in a different form, will be there after the spending review."
It is understood that the extension of the fund follows a review of regeneration and deprivation spending by the prime minister's strategy unit.
Sources close to the review team said the regeneration work of housing associations had received "glowing references".
One source said: "[Number 10] is looking at delivery and what is needed in terms of new delivery mechanisms to ensure the millions poured into neighbourhood renewal are well spent.
The source, who has seen a draft of the strategy unit's report, added: "At the local level there will be far more devolution of power from local authorities – one of the big winners from this looks, right now, to be housing associations.
"It is not the case that the government wants to set up more vehicles;the thinking is that you choose the vehicles that best deliver at present.
"By and large, that's looking like being housing associations.
"The money will still go through local strategic partnerships but on the strict understanding that it is spent by housing associations."
A spokeswoman for the ODPM said: "We cannot speculate on the outcome of the spending review or on that of the strategy team."
Sarah Webb, director of policy at the Chartered Institute of Housing, said that the original idea of neighbourhood renewal had been to "mainstream efforts at improving communities".
"The concept was good, but delivery has often been poor, so an overhauled strategy would make sense," she said.
Source
Housing Today
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