Teesside International Airport is about to forge a bright new future after announcing a partner which will invest £20m in the operation over the next five years.

Peel Holdings, the Manchester firm behind the revolution at John Lennon airport in Liverpool and Manchester's Trafford Centre, will take control of proposals aimed at establishing Teesside's position in the aviation market.

Passenger numbers are expected to double in the wake of massive expansion and redevelopment plans including a radical overhaul of the airport's jaded terminal building.

Low-cost operators Ryan-air, which already runs a route to Dublin from Teesside, and newly-formed Jet2 were at the forefront of budget airlines last night keen to learn more about Peel's plans to take the airport forward.

Paul Fitzsimmons, head of communications at Ryanair, said: "If Teesside International is going for development they are positioning themselves very favourably in a fast growing market."

Steve Lee, commercial director of Jet2, said: "Jet2 already has a close relationship with Peel Holdings through its parent company, Channel Express, which has a regular programme out of Liverpool airport. Because of this, we would certainly be interested in talking to Peel Holdings about any involvement they have in regional airports."

The airport authorities expect to finalise the agreement with Peel by March.

Ken Hall, chairman of the airport board, said: "This is massively significant. An airport that is owned by five local authorities cannot come up with this kind of cash. We needed a partnership approach."

Hugh Lang, airport managing director, said the terminal building was likely to be doubled from 5,000 to 10,000 square metres

Bob Gibson, speaking for the airport authorities, said 34 firms and organisations had expressed an interest in becoming Teesside's strategic partner.

"It will be a bigger, better and more comfortable airport," he said.

Peel wants to develop 250 acres alongside the airfield into business and industrial parks. Its strategic planning director, Peter Nears, said: "Airports are widely recognised as drivers of economic growth and therefore maximising the regenerative benefits of Teesside International Airport can bring to the local economy will be a priority."