A blueprint to transform the North-East economy will be announced by the Government today.

Regional development agency One NorthEast has been given the seal of approval by bosses at the Department of Trade and Industry for a multi-million pound three-year plan that will benefit all sectors of the region.

The agency will be the first in the country to adopt a new funding approach that will allow cash to be better targeted at hard-hit areas of County Durham, Tees Valley, Tyne and Wear and Northumberland.

It is hoped that a further £86m will be attracted to the region, as well as thousands of jobs and learning opportunities created.

Schemes that will be announced include:

* a North-East Science and Industry Council to help reposition the region on the world stage for research and development

* a healthcare centre of excellence in Hartlepool

* Enhancing Darlington's role as a gateway to the North-East and Tees Valley

* programmes to regenerate communities in east Cleveland

* And a North-East Technology Park, near Sedgefield, County Durham.

The Tees Valley Partnership, Tyne and Wear Partnership, County Durham Economic Partnership and Northumberland Strategic Partnership are to benefit from £185m.

One NorthEast will give another £397m to existing schemes across the region during the next three years.

Tees Valley Partnership chairman Alistair Arkley praised One NorthEast for putting economic regeneration in the hands of the community.

The new plan will run until 2005 and is the first to be prepared within a new framework set by the Government, which will more effectively measure the economic performance of the regions.

In Darlington, money will be given to support community regeneration initiatives and to help unemployed people back to work.