COUNTY Durham's seven district councils could be replaced by just three all-purpose authorities.

If the North-East gets a regional assembly one of the current two tiers of local government will be abolished.

And a team of experts says the all-purpose authorities could be the answer rather than just one county-wide council. Birmingham University's Institute of Local Government Studies was commissioned by the district councils to look at the issues.

It recommends that any referendum on an assembly should also ask voters if they want three unitary authorities or only one.

The new council would be created by merging Chester-le-Street Council with Derwentside, Durham City with Easington, and Wear Valley with Sedgefield and Teesdale.

The report says it has found a growing enthusiasm for unitary local government in the county.

Three councils would be "the safer option for the future - the one that can be more easily relied upon to deliver what is required in County Durham.''

Robin Todd, chairman of the Durham District Councils Forum, said three councils would be "large enough to have the strategic capability they need while being small enough to be in touch with the communities they will serve.

"The forum will now consult widely upon the findings.''

But Durham County Council's deputy chief executive, Mark Lloyd, said it believed that a single county-wide council would "cost less to establish, cause the least disruption to key public services and deliver efficient and effective services most economically in this county.

"We were pleased that the district councils' own consultants also agreed that this option would work and should be one of the choices placed before the voters.

"The Government's Boundary Commission has the task of deciding on the options for local government review.

"The county council will this summer present to the committee the compelling case for a single authority serving the county.''