A SEASIDE town could be transformed into the set of a Hollywood blockbuster starring Keira Knightley and Jude Law.

The Northern Echo can reveal that film director Joe Wright plans to use Redcar beach, in east Cleveland, to shoot scenes for his latest movie, based on Ian McEwan's best-selling novel Atonement.

The beach would be transformed into Dunkirk. Scenes of the Second World War evacuation will be shot in Redcar and in Grimsby.

It is understood Oscar nominee Knightley has agreed to star in the film, a story of love, war and emotional truth.

Rumour has it Jude Law - twice nominated for Oscars for his roles in Cold Mountain and The Talented Mr Ripley - could star alongside Knightley, but this is to be confirmed.

Redcar and Cleveland Borough Council confirmed it had been approached.

A spokesman said: "Redcar and Cleveland Council has been approached for talks on using the beach for filming and talks will be held next week."

Vera Moody, cabinet member for economic development, last night welcomed the news. She said: "Wouldn't it be absolutely fantastic if we could bring something like this to Redcar? Particularly with a star as big as Jude Law."

Filming is due to begin in June when Knightley has completed another film.

Starting in 1935 in a Surrey mansion, Atonement tells how a 13-year-old girl's overactive imagination shatters the lives of her older sister Cecilia and Robbie, the man who Cecilia loves.

It then moves on to 1940, with McEwan writing about the brutality and hell of the retreat to Dunkirk.

The Northern Echo understands Knightley will take on the role of Cecilia, and has turned down a number of other roles to play the part.

It is believed production staff have been scouting the area to examine its potential.

Director Wright previously worked with Knightley for her Oscar-nominated performance in Pride and Prejudice. The actress is believed to have met the director last week.

A spokesman on behalf of regional screen agency Northern Film and Media said they could not confirm Redcar had been earmarked for the film, but said: "We will be more than keen to talk to any production coming to the region. We are currently in talks with several to try and secure them for the North-East."

The film and television industry was worth £8.5m to the North-East economy in 2004 - double the amount it was in 2003. The total was buoyed by television shows such as 55 Degrees North, Distant Shores and Wire in the Blood.

Statistics from Northern Film and Media showed companies spent an average of £23,000 every day last year.

NFM calculates this money created 134 jobs and kept 126 people in work in the region. Other projects included primetime dramas such as Steel River Blues and Lawless, as well as Jamie's Dinners and a £1m advert for Carling lager.