IT has been heralded as one of the most environmentally friendly business developments in the North-East, but insiders believe it may have a more controversial future in store.

Planning officers have approved proposals for the £5m Rivergreen Centre, an eco office and conference development in the Aykley Heads area of Durham City that will provide more than 200 jobs.

But sources last night suggested the 48,000sq ft development, which will have a conference centre for up to 200 people, may become the base for a North-East regional assembly.

There has been widespread agreement that Durham offers the best possible compromise for the seat of regional government if a referendum later this year is successful.

Rivergreen last night emerged as a potentially cost-effective alternative to establishing a dedicated assembly building.

The development will be built over the next 14 months on a sloping hillside overlooking Durham Cathedral and the east of the city.

It will be built by Rivergreen Developments, which has completed the nearby Aykley Heads Business Centre.

The building is designed to have the minimum impact on the environment and natural resources.

The roof will be covered with sedum - a fleshy-leaved plant - and rainwater will be used for most non-drinking purposes. Toilet waste will be collected and composted.

One source, who asked not to be named, said: "Discussions have taken place as to the suitability of this venue for a future assembly."

A spokeswoman for Durham County Council categorically denied there was any possibility of the regional assembly being based at the Rivergreen Centre.

The assembly would have the final say on its official headquarters.