PLANS for a development expected to generate £3m for a North-East racecourse have been approved.

The news comes days before one of the most important events in the history of Redcar Racecourse as it prepares to stage the £100,000 William Hill Lincoln Handicap, on Saturday.

Chief executive Neil Etherington said the development would be "a major step forward in exploiting the potential of the site, securing the future of racing and enhancing one of the most important visitor attractions in the Tees Valley area."

Redcar and Cleveland Borough Council approved the plans, which involve realigning part of the course and building about 100 apartments on three acres of land.

The scheme means the racecourse can boost the prize money for Redcar's totepool Two-Year-Old Trophy to £200,000 - making it the richest race in the North-East.

It is hoped the new-look track will open for the start of the season next year.

Mr Etherington said: "The news of approval for our proposals could not have come at a better time as we are putting in place the final arrangements for our big day on Saturday, when we anticipate many thousands of racegoers will be coming to Redcar for the first time to see the staging of this year's Lincoln.

"These plans are particularly important because they will mean that we can use the money we hope to raise from the sale of the land for housing to go directly back into the business, whether for improving the course and facilities or increasing the prize money we can offer.

"It will, for example, help us develop the racecourse as a centre for a variety of uses, such as conferences and weddings.

"We see this as good news for the entire Redcar community, enhancing what is, without doubt, the town's most high-profile asset and helping to increase the 70,000 visitors a year who already come to Redcar for our meetings."

The council's cabinet member for culture, leisure and tourism, Councillor Dave Fitzpatrick, said: "We are delighted to be supporting anything that will strengthen the borough's sporting and tourism potential."