A COUNCIL leader says he is optimistic about a huge city centre redevelopment, despite claims it will not get Government funding.

The 15-year Sunderland Area Regeneration Compact (Arc) aims to breathe new life into the city following the Vaux Brewery and Grove Cranes closures.

The £700m redevelopment could see 10,000 jobs created and a mix of shops, housing and leisure facilities built.

However, claims were made at the weekend that the plans could be at risk because the Government was reluctant to give more money to the city.

Colin Anderson, leader of the city council, said: "We don't yet know how much public money will be available. It will be channelled through One NorthEast, the regional development agency."

He said he was optimistic that the programme would go ahead.

One NorthEast's Peter Stoddart said he envisaged extra resources coming from the Government's spending review.

"We will be working hard to ensure that the Sunderland Arc programme receives maximum attention," said Mr Stoddart. He added that attracting "heavier and additional private investment" would be more important