REGIONAL development agency One NorthEast has agreed to put £9.8m into plans to create one of the world's leading stem cell research institutes in the area.

It will allow the North-East to compete on the world stage and is further evidence of the region's worldwide reputation as a leader in this rapidly growing industry.

Investment by One NorthEast will create 25 jobs, mainly scientists and technicians, to complement existing staff across the region.

The aim is to build on the region's excellence in stem cell research and technologies and turn them into new therapies to improve degenerative diseases, the effects of ageing and serious injury.

The cash is part of a funding package of nearly £25m that has been put together by One NorthEast, the University of Durham and the University of Newcastle to establish the regional Institute of Stem Cell Biology and Regenerative Medicine.

The institute is a key component of the Science City initiative and will add to Newcastle's International Centre for Life, building on world-class strengths in the North-East.

Stem cell research is one of the four main initiatives of Science City to create a critical mass of research activity.

By creating two facilities - one in the Newcastle Fertility Centre at Life, run by the Newcastle-upon-Tyne Hospitals NHS, and an adjacent stem cell laboratory occupied by Newcastle University scientists - stem cells of sufficient quality will be produced to be used for therapeutic purposes.

New facilities at Durham University will provide a high-level service to stem cell scientists across the region.