A MULTI-MILLION pound National Lottery bid to build a flagship museum in the region - the centrepiece of plans to create a new regional cultural capital - has been withdrawn.

The partnership behind plans for a Great Museum of the North, in Newcastle, have pulled an application for £12m from the Heritage Lottery Fund.

A decision on the bid was due at the end of this month.

But the partnership, led by Newcastle University and Newcastle City Council, withdrew it after negative comments from fund officials.

The scheme was drawn up by Newcastle-educated architect and urban designer Sir Terry Farrell, who created the award-winning International Centre for Life.

The interior was to be the work of Dinah Casson, who designed the V&A's award-winning British Galleries.

Supporters said the scheme would mark a new beginning in the North-East's cultural renaissance.

It is understood Heritage Lottery Fund bosses thought parts of the scheme were too extravagant and have suggested that the partnership re-submits with a smaller bid.

City council leader Tony Flynn said: "The council has demonstrated its commitment to this project by allocating £3m towards the costs and we felt that giving ourselves more time to develop the bid was the best course of action at this stage."

The £34m project aims to bring together Newcastle University's Museum of Antiquities, Shefton Greek Museum, Hatton Gallery and the Hancock Museum.

The heritage fund board was not convinced that floor-to-ceiling glass display pavilions for the Hancock Museum represented value for money.

A spokesman said: "We felt that more work needed to be undertaken on the proposal and will continue to advise the university and its partners to this end."

The museum, which had a target completion date of 2008, is a key element in plans for a cultural quarter centred around the university.

A new funding bid looks likely to be submitted in June, but could mean a delay of up to a year.

The partnership behind it includes Tyne and Wear Museums, the Natural History Society of Northumbria and the Society of Antiquaries of Newcastle