PLANS to transform the north bank of the River Tees into offices and research facilities, with the potential to create 2,000 jobs, have moved a step closer.

Regeneration agency English Partnerships has drawn up a £20m masterplan to transform the area between the Princess Diana Bridge and the Tees Barrage to create offices, research facilities, housing and leisure developments.

The plan for the north bank has been developed in partnership with Stockton Borough Council, regional development agency One NorthEast and the University of Durham.

The redevelopment will follow construction of the north nank gyratory road, which will provide improved access to Stockton town centre and open up a gateway to derelict former industrial land.

Two planning applications have been submitted to Stockton Borough Council for the site, in advance of applications for European Regional Development funding of about £3.5m.

The first is seeking outline planning approvals for a 24-hectare mixed-used development.

It will open the way for a research and business park, together with housing, student accommodation, public open space and facilities such as a hotel and restaurants.

It also includes a riverside cycle and walkway along the Teesdale Way and a new bridge across the Tees.

The second is for detailed approval for a programme of reclamation and infrastructure work on 20 hectares of land closest to the river.

It is part of a response to the recent decision by Corus to reduce its steel producing operations on Teesside.

David Carr, English Partnerships' area project director for the North, said: "The regeneration of this important site is a key element in the regeneration of Teesside - and Stockton in particular.

"English Partnerships, supported by its partners, has put forward an ambitious programme under which work would begin on the site early in the New Year.

"It is a complex proposal, but the stakes are high. It has the potential to create more than 2,000 jobs, both permanent and temporary posts during the construction stages."

Dr John Bridge, chairman of One NorthEast, said: "The region's universities and colleges are home to a huge bank of knowledge and expertise.

"At North Bank, One NorthEast is working with the University of Durham and private sector partners to develop research facilities which will attract businesses eager to link up and develop high-tech products.

"The redevelopment of North Bank will also reclaim a large derelict site and remove a major blot from the landscape.