The chief executive of the regional development agency last night announced he will step down from his role in May.

Mike Collier will retire from One NorthEast two months after his 60th birthday after four years in the post.

He was warmly praised for his efforts to improve the economic fortunes of the region.

The agency said that during Mr Collier's time, One NorthEast created or safeguarded 45,850 jobs, helped establish 2,267 new businesses, reclaimed 856 hectares of land and secured £1.1bn of private sector investment in the region.

But the North-East also suffered a number of major industry blows, not least the loss of thousands of jobs when the likes of Black & Decker, Corus, Rothmans, Viasystems and Electrolux all shed staff.

Mr Collier also ran into controversy within months of his appointment when he accused Teessiders of "lacking confidence".

Defending accusations of a Newcastle bias in 1999, Mr Collier said: "It's quite striking how people in the Tees Valley look at Newcastle. They lack confidence. There is something about the way people think in Teesside. It's laughable that a distance of 30 miles is seen in such terms."

Moves to recruit Mr Collier's successor have already begun to ensure a smooth transition can take place and the post will be advertised next month.

Mr Collier said: "I would like to pay tribute to each and every member of staff at One NorthEast whose hard work has helped the agency achieve so much."

Dr John Bridge, One NorthEast chairman, said: "Mike is a dedicated professional who has put a great deal of personal time and effort into the results we see today. He will be a hard act to follow."