Corus has agreed to study union plans aimed at saving 6,000 threatened jobs - more than 1,000 of them in the North-East, after a "very productive" meeting today with unions.

Union leaders said they were encouraged after four hours of talks at the company's London head office.

A joint working party has been set up and will meet over the next few weeks to work on a package of proposals put forward by the unions aimed at saving the jobs.

Michael Leahy, general secretary of the Iron and Steel Trades Confederation, said he was "very encouraged" by the response of Corus officials at today's meeting.

Union leaders had feared that the company would reject out of hand their suggestion of a £90m package to retain steel workers' jobs for the rest of the year in the hope that the market for steel will pick up.

Mr Leahy said: "Corus is now engaged in a debate about the future of the industry and we are hoping to make significant progress over the next four weeks.

"For the first time they are listening and we welcome that. We have started a genuine debate and there is definite hope."

Bob Shannon, national officer of the Amalgamated Engineering and Electrical Union, said: "We feel that at long last we have made some progress.

"For Corus to agree to hold discussions with us is a real breakthrough. The atmosphere has definitely changed."

Both union leaders praised the Government for supporting the plan which involves a subsidy to retain steel workers over the coming year.

Corus stunned the industry earlier this year when it announced that 6,000 jobs would be axed and plants closed because of over-capacity.

Factories at Llanwern and Ebbw Vale in South Wales and Teesside were among those due to be hardest hit by the cutback.

Trade and Industry Secretary Stephen Byers gave the unions a big boost yesterday when he pledged government support for their plans.

His department will contact the European Commission seeking clearance for the support package.

Read more about our 'FIGHT FOR STEEL JOBS' campaign here.