THE North-East is poised for a share of £10bn in science funding over the next three years, the Government said yesterday.

Biotechnology, nanotechnology and research-led companies will be at the receiving end of the billions being spent on research to put the UK on an equal footing with the US in science and technology.

More than £1bn will be allocated to biotechnology, which includes research into stem cells and DNA-based medicines.

And Newcastle, named as a science city by Chancellor Gordon Brown last year, has a strong argument for a share of the money.

Its Centre for Life is a leader in embryology and stem-cell research, followed by the University of Durham, which could also get a share.

Stem cell research has been opened up by legislation allowing human embryos to be cloned for medical purposes.

Trade and Industry Secretary Patricia Hewitt said about £200m would also be spent on nanotechnology -set to benefit Newcastle's Centre of Excellence for nanotechnology, micro and photonic systems (Cenamps), a One NorthEast initiative.

Nanotechnology involves manipulating matter on a small scale, and could be used to deliver cancer-fighting drugs, develop faster computers and create materials such as self-cleaning glass.

Research on stem cells will also benefit from £1.5bn going to the Medical Research Council over the next three years.

Total spending on science will increase to more than £3.4bn a year by 2008. Ms Hewitt said: ''This is the biggest investment in science for a generation, and our aim is to close the gap with the United States."

Dr Miodrag Stojkovic, the deputy director for stem cell biology at the Centre for Life, said: "This will increase the level of science in the UK and in the North-East and prevent a brain drain to the USA."