PLANS for a multi-million pound regeneration of a Teesside town centre should be submitted by the end of next month.

The Gateway Project for Billingham is a proposed leisure, health, learning and cultural facility in the town's John Whitehead Park, which will cost more than £20m.

Earlier this year a £17m bid for private finance initiative money from the Office of the Deputy Prime Minister and the Department for Culture, Media and Sport was turned down.

Despite the setback, Stockton Borough Council is seeking funding for and exploring other options.

Steve Cooke, manager of the Billingham Partnership Board, said: "Whilst disappointed the first funding bid had been unsuccessful, the board noted it had taken three years to put together a funding package to enable development work to proceed in Thornaby town centre.

"The detailed planning application for the Gateway scheme is proceeding to plan, and the council anticipate this application will be submitted, together with an outline application for a supermarket on the Forum site, in October. The council is now looking ahead at the options available for developing the rest of the town centre. The Partnership Board will continue to monitor progress and shall receive regular updates from the council."

The £17m funding would have allowed private sector money to be ploughed into the provision of the Gateway scheme with public sector money being paid over a period of about 25 years for the use of the facilities.

The council plans to use money from the sale of the Billingham Forum site to provide funding for the project.