A £26M regeneration package for the Tees Valley has been announced.

A £20m scheme to develop 40 acres of derelict land and regenerate the riverside in Stockton has been given the go-ahead, while a £6m investment in Teesside Airport has also been agreed.

The Stockton development, on the north bank of the River Tees, is expected to create more than 2,120 permanent jobs and nearly 3,900 temporary jobs during construction.

The land is to the east of Stockton town centre, opposite the University of Durham, Stockton campus.

The north bank forms part of the land inherited by English Partnerships from the former Teesside Development Corporation. It has been derelict since 1983, when its former use as a steel works ceased.

Councillor Bob Gibson, leader of Stockton Borough Council, said: "This is a major job-creating boost for the area, which will create an attractive development along the river.

"It will be the missing piece of the jigsaw for that area, turning former industrial land into a thriving commercial centre at the forefront of technical development, focusing on the new knowledge-based industry."

The scheme includes new student accommodation and teaching space for the university, a pedestrian footbridge link to the site at Teesdale, a business park, a hotel, pub and restaurant, landscaping and open space.

It is also expected to include a promenade incorporating a major footpath and cycle route linking the Tees Barrage with Stockton town centre via north bank.

The scheme has been made possible by an investment by English Partnerships of £18m and a bid for European funding of £3.5m.

John Hayward, provost of University of Durham, Stockton campus, said: "This scheme enables us to double the size of our present campus over the next few years and to increase education opportunities and research expertise for the region."

Meanwhile, Teesside International Airport has been put at the heart of the economic regeneration of the Tees Valley following a £6m partnership between the airport, development agency One NorthEast, and the Tees Valley Partnership.

The partnership comes as a further boost to the airport following Deputy Prime Minister John Prescott's go-ahead for a £4.7m road improvement scheme on the A66 at Long Newton.

As part of the partnership plan, a major feasibility study will assess the needs of the airport for the next 30 years. Further access improvements will also be made as well as investment in infrastructure such as apron and taxiway areas.

Airport chairman, Councillor Ken Hall, described the investment as "the start of a new era for the rapidly-expanding airport".

Under the partnership agreement, covering the next five years, the airport, working with One NorthEast and the Tees Valley Partnership, will carry out a detailed study of the airport's services and facilities, as well as looking to the investment needed to maintain its position as one of the UK's fastest growing regional airports.

Airport managing director Hugh Lang said: "This announcement is the second element of very good news for the airport in recent weeks. The A66 Long Newton improvement scheme will make an enormous difference both for passengers and the future development of the entire airport site."

Dr John Bridge, chairman of One NorthEast, added: "Teesside Airport's success is essential for the future prosperity of the Tees Valley. This investment demonstrates our commitment to work with the airport to develop its potential and contribute to the economic and social regeneration of the area."

Alistair Arkley, chairman of the Tees Valley Partnership, said: "The key efforts of all agencies is widening our economic base and increasing the competitiveness of local companies. It can only achieve that with a vibrant, successful airport."