The Newcastle-Gateshead Mayoral Development Zone (MDZ) aims to deliver long-term economic growth, housing, and new communities through a 20-year regeneration strategy.

The zone will cover key central areas of Newcastle and Gateshead, taking in several strategic sites along the River Tyne.

Backed by the North East Mayor Kim McGuinness and the North East Combined Authority (NECA), the MDZ is being positioned as "the boldest and most ambitious mayoral development initiative in the country."

A CGI of Forth Yards (Image: Supplied)

Ms McGuinness said: "Like many local people, I get frustrated about developments taking far too long to deliver which means we don’t fully feel the benefit of schemes as quickly as we should.

"This needs to change.

"The creation of our new Mayoral Development Zone will help to bring in major new investment and quicken development of local schemes so that we can get on with delivering our vision and bold plans to transform the North East.

"We want to boost jobs, attract new business and bring in major private sector investment to support the work we’re already doing to grow our high streets, business parks and our rural and coastal areas.

Forth Yards (Image: Supplied)

"We want to create better places for people to live and thrive, and this initiative will accelerate our ability to do this.

"I am confident the creation of the new Mayoral Development Zone will radically speed up the pace of development and can assure people that there will be real visible change in the coming years."

The MDZ will build on existing work by Newcastle and Gateshead councils and include major projects such as the Forth Yards development, which would see the creation of 2,500 new homes, as well as Gateshead Quays and other priority sites identified in the North East Devolution Deal and Trailblazer Deal.

Councillor Martin Gannon, leader of Gateshead Council, said: "Gateshead is entering an exciting new phase of regeneration, with major projects now moving forward across our town centre, riverside and neighbourhoods.

"Partnership is key to this.

"By working closely with the North East Combined Authority and Newcastle City Council, we can go further and faster in creating good jobs and building high-quality homes.

"This will not only strengthen Gateshead’s economy and communities, but also give residents, businesses and investors clear confidence that Gateshead is moving forward with ambition."

The development zone will also support regeneration elsewhere in the region, including projects like Sunderland Riverside and the Durham Business Innovation District.

Councillor Karen Kilgour, leader of Newcastle City Council, said: "Newcastle is a growing city that is undergoing major transformation with its development sites such as Helix, Stephenson Quarter and Pilgrim Place.

"The Government’s recent announcement of £120m for the Forth Yards site has really put Newcastle’s most significant development site firmly in the spotlight."

The exact boundaries of the MDZ are still to be defined, but it will include a number of sites on both sides of the River Tyne in the heart of Newcastle and Gateshead.