NEWCASTLE'S DanceCity, the National Dance Agency for the North, has been given £1.4m to move it a step closer to the aim of opening a £4.6m dance centre by 2004.

The leader of Newcastle City Council, Councillor Tony Flynn, said: "DanceCity is an important and valuable asset to the city and the region, and the high quality facilities planned for the new headquarters will boost our application to become European Capital of Culture in 2008."

The centre for dance will house four dance studios, a studio theatre with seating for 250, a library and offices for DanceCity and independent dance companies, an education centre, a Pilates Studio plus a caf/bar consultation space for an alternative health clinic.

The building will also house the UK's first undergraduate degree course in choreography, run by Northumbria University in collaboration with DanceCity.

Janet Archer, Director of DanceCity, said it was the biggest dance agency outside London supporting professional dance artists from all over the world.