TALKS are taking place that could bring hundreds of jobs to the North-East.
The Swan Hunter yard, at Wallsend, North Tyneside, is in advanced discussions with Dutch company NV Ecodock about creating one of a number of shipbreaking centres at the Tyne yard.
But unlike the situation that led to the Ghost Ships controversy, when former US warships crossing the Atlantic to be decommissioned in Hartlepool, the latest moves have the backing of environmental campaign group Greenpeace.
It is understood NV Ecodock could invest millions of pounds in the development of a decommissioning centre capable of dismantling former warships and merchant vessels.
Doebren Mulder, NV Ecodock chief executive, confirmed the Tyne had "a good chance" of being chosen as a site for such a yard.
Old warships and other vessels would be recycled into craft to service the offshore industry.
Swan Hunter boss Jaap Kroese said he was confident a deal could be agreed with his compatriots at NV Ecodock.
"The proposal is not only for ships, but also for offshore platforms.
"We have the licences to decommission platforms, but they have all the licences to decommission ships."
Mr Kroese, a Greenpeace member, said any arrangement would have to have the blessing of the campaign group.
"We would have to build new facilities to make it environment friendly. I certainly don't want any hassle with Greenpeace - that is the last thing we want."
Mr Kroese said that although such a facility would bring 400 jobs directly, it could lead to many other spin-off jobs in support companies.
GMB union regional organiser Julie Elliott confirmed Greenpeace had been involved in talks to ensure environmental concerns were addressed.
Greenpeace policy director Simon Reddy said the pressure group was in favour of specialist dismantling yards being set up to scrap ships to high health and safety and environmental standards.
It is hoped a final decision about the development of such a yard can be reached by early next year.
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