Job will include expansion of stadium and construction of new facilities in surrounding area

The development of the area surrounding the City of Manchester stadium is set to go ahead following the announcement of a formal agreement between the football club and the council.

Some 200 acres will be transformed under the scheme, which could include new leisure and sporting facilities, as well as the expansion of the 48,000 seat stadium.

Manchester council, New East Manchester and Manchester City Football Club have signed up as a joint development board to collaborate on the regeneration.

Simon Bate, chairman of New East Manchester, said: “The City of Manchester stadium and Sportcity facilities have been central to raising the profile of east Manchester and have inspired confidence and new investment here.

“The creation of a destination leisure opportunity in east Manchester has been a core element of our vision for the area and our ability to give real consideration to this now is truly exciting.”

Last month Building revealed that the council had brought in Arup and Turner & Townsend to remediate around 17 acres of land directly around the stadium.

The area had previously been earmarked for a supercasino but has been sitting empty since the project was ditched by Gordon Brown in 2007.