A multi-million pound redevelopment plan to put Durham on a par with Britain's other great historic cities, such as York, Chester and Bath, has been unveiled.

Developers have given themselves 20 years to redefine the region's oldest city and make it worthy of the World Heritage Status bestowed on the cathedral.

The plan - which has the backing of local authorities, regional development chiefs and the University of Durham - faces formidable obstacles, not least how to redevelop a city layout largely unchanged since medieval times.

But officials say the city has no choice but to change, especially as it is the front runner to become the home of North-East regional government.

A council spokesman said last night: "We've been content to rest on the laurels of the cathedral and the castle for far too long. The consensus among people now is that Durham is beautiful but boring. That's got to change."

As first step towards transformation the partners - known as the Durham City Steering Group - commissioned a series of studies to gauge attitudes toward the city.

The consultants' report concluded it was impossible for Durham City to compete with larger cities such as Newcastle and Sunderland.

Instead, it urged planners to concentrate on redefining the city's medieval past to meet modern expectations.

But a steering group member said: "We have got to do it without turning Durham into some kind of hideous Disney style theme park."

Meg Abdy, project director of The Chambers, which conducted the study in partnership with chartered surveyors Donaldsons, said: "The message that came through strongly was that Durham is not achieving its full potential."