Up to 13,000 jobs will be created after Newcastle City Council won a £92 million investment as part of its City Deal.
The permanent roles will be created over the next year 25 years on four key developments sites.
Millions of pounds will be invested at Science Central at Gallowgate, Central Station, East Pilgrim Street and Gateshead Quays.
The deal covers 80 hectares of land and will give a welcome boost to the construction industry creating more than 600 temporary jobs.
The scheme aims to attract an estimated £800m of private sector investment.
Leader of Newcastle City Council, Coun Nick Forbes, said: “This announcement is magnificent news for Newcastle and the wider region.
“It is the culmination of a lot of hard work by the city council over many months lobbying government and setting out in no uncertain terms the benefits of our City Deal proposals.
"We take very seriously our responsibilities for creating the right climate for jobs, and are delighted in this vote of confidence. Our top priority has always been to make Newcastle a working city - and the creation of up to 13,000 jobs will go a long way to achieving that.
“These jobs will improve the lives of thousands of families and give many young people the chance to start their careers.
“As well as creating jobs, this City Deal is good news on a number of other fronts. It will establish the city as a low carbon economy; deliver up to 15,000 homes on brownfield sites, reduce congestion on the A1 Western Bypass, and create 500 new apprenticeships in three years.
“Our priority now is to get on with this and make it happen on the ground as quickly as possible."
The City Deal also represents a big step forward in reducing congestion on the A1 Western Bypass now that it will become a top priority for funding from the Department of Transport.
Over three years 500 new apprenticeships will be created in the city which has also been chosen as a low carbon Pioneer City, with a 34 per cent carbon reduction by 2020.
Government has also given its backing for the council to invest £25m in housing on brownfield sites.
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