THE region’s council leaders will open talks to argue for a major transfer of powers “very soon”, after George Osborne gave the go-ahead.

And they will continue to insist a devolution deal must not depend on bowing to pressure for a single ‘metro mayor’ to rule a huge area “from Newton Aycliffe to Berwick”.

Simon Henig, the chairman of the North East Combined Authority, said: “We have received a letter from George Osborne offering talks, so we hope they will take place very soon.

“But there is still the question of whether an elected mayor will be a prerequisite for a major deal - and there’s no reference to that in the letter, which is pretty bland.”

The Chancellor has provoked controversy by insisting only areas with cross-border mayors can be trusted with a full portfolio of responsibilities devolved from Whitehall.

Greater Manchester, which bowed to the pressure, was rewarded with powers over the police, buses, business support, to introduce ‘smart ticketing’ and to keep £1m from growth to fund a tram extension.

South Yorkshire – which refused – was handed a far weaker deal, although it will also gain London-style ‘smart ticketing’ on public transport.

Meanwhile, talks with West Yorkshire have hit a stalemate over its refusal to agree to a mayor – or to settle for a deal as lightweight as the Sheffield city-region.

Mr Henig, Durham’s Labour leader, added: “I don’t see why extra powers to local areas should be dependent on having an elected mayor. Why should there be that connection?

“How realistic is it for one individual to take in an area from Newton Aycliffe to Berwick, which must be about 100 miles? We are not a single urban conurbation, like Greater Manchester.”

It was also unclear whether talks will take place with the Chancellor himself, or with devolution minister Greg Clark.

The North East Combined Authority brings together the seven councils of County Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside and Sunderland.

It has yet to complete its detailed devolution proposal, but it will include calls for greater control over housing developments and ‘back-to-work’ programmes.

Although Tyne and Wear recently won the right to ‘re-regulate’ buses, the authority may also explore whether it can speed up the process, amid fierce opposition from the private firms.

Labour has urged its own council leaders to stick to their guns, promising a stronger devolution package after the general election, if Ed Miliband wins.

However, the gamble for councils is that opinion polls point to another hung parliament, with the risk there will be no strong Government in place to make a strong post-May proposal.

Mr Henig said the SNP Scottish Government had also agreed to talks with the combined authority, about how to agree closer cross-border working links.