A row that threatened to destabilise the region's tourism industry has been resolved.

Bosses at regional development agency One NorthEast and Northumbria Tourist Board have agreed to settle their differences after a long-running battle over who was ultimately responsible for marketing the region.

The change will see NTB incorporated into One NorthEast. The tourist board will continue to provide services to tourism businesses, but the agency will take overall strategic responsibility.

Margaret Fay, chairman of One NorthEast, said: "I am delighted that we have identified a way forward for tourism in the region.

"We recognise that the impasse between the organisations has been unhelpful to all involved in the industry and that a resolution to the situation was needed in order to reassure both NTB staff and also tourism businesses."

She pledged that staff at the board's headquarters, in Aykley Heads, near Durham City, would remain there for the time being. "We have listened to NTB's concerns and they have listened to ours," she said.

"We are concerned about the staff at NTB and are now working hard to transfer them over, but are keen that they remain at Aykley Heads, at least for the time being."

Problems came to a head in December, when One NorthEast announced it was taking direct control of tourism in the region, effectively making NTB obsolete. It followed months of rows between the two bodies over how tourism should be delivered.

Jenny Robson, tourist board president, said: "This is a very welcome development for everyone, but particularly the thousands of tourism businesses across the North-East.

"There is a good deal of talking still to do, but we hope to ensure a continuity of service that is so important at this crucial time of year in tourism terms."

But some tourist board members said they still had concerns about the move.

Its chairman of business members, Hugh Becker, said: "If the tourist board is displaced without being replaced by a demonstrably more effective structure, there will be a costly vacuum at the most critical time of year as the Easter holiday season begins."

Durham County Council and One NorthEast, are carrying out a due diligence exercise to establish the legal and financial situation of NTB. Once this has been completed, the transfer will be made official.