This innovative contract is worth at least £100m over the first eight years and potentially up to £800m over the 20-year life of the regeneration programme.

The deal means there could finally be movement at the Vaux site, which has been standing empty for 14 years since the brewery closed in 1999.

Other key sites which will also be developed by the partnership include Seaburn, Chapelgarth, Farringdon Row, Holmeside and parts of the East End.

Cllr Paul Watson, Leader of Sunderland City Council said: “It’s fantastic news that Siglion can now drive forward the city’s largest-ever development programme. The signing of this contract is a major step forward in propelling regeneration and economic growth that will transform key city sites.

“It also ramps up our ability to attract new investment, following on the major works currently being carried out in Sunderland. We are excited about working with our partners who are as committed as we are to the long-term success of the city.”

Carillion Chief Executive, Richard Howson, said: “We look forward to working with Sunderland City Council and to engaging with local communities and businesses to deliver the Council’s vision for the City, which will bring major benefits to the people of Sunderland and act as a catalyst for further inward investment.”

The Carillion/Sunderland City Council joint venture has appointed Igloo Regeneration to provide development and asset management services to the joint venture.