THE regeneration of Durham city centre has been praised by Deputy Prime Minister John Prescott.

Durham City Council is overseeing a £150m redevelopment that includes the Millennium City complex housing the Gala Theatre.

Mr Prescott told the council while visiting the city: "You are doing a tremendous job here. The results look absolutely great and I am delighted the new developments are all on brownfield sites.''

Council environmental services director John Jennings said: "Until only a few years ago, developers viewed Durham with some caution, following each other instead into the more obvious business centres such as Newcastle.

"Now, the big names are seeing Durham as a niche market for tourism and conferences, with the fantastic new quarter at Millennium City adding a new dimension to the established strength of the university in attracting national events."

He said a four-star, 200-room hotel was planned at the riverside, linked by a footbridge to the new developments, and other national hotel developers had expressed interest in Durham.