The first phase involves demolition of council buildings, including County Hall, at the 15-hectare site which already has outline planning consent for 440,000 sq ft of commercial space.

The 62-hectare innovation district is already home to several major businesses and institutions, including Durham University Business School.

The opportunity will bring together the university, industrial partners, government, and private sector investors.

The council, with the support of the university, has shaped the vision for the innovation district, which is expected to become a regional hub for research, data science, fintech, green technology, and healthcare.

Subject to the execution of the joint venture agreement, Muse and the council will work in partnership to develop more detailed proposals.

Phil Mayall, managing director at Muse, said: “Durham County Council, supported by Durham University, has already developed an ambitious vision, and we are excited at the prospect of working in partnership to deliver the Durham Innovation District.

“The Aykley Heads campus will act as the catalyst for this nationally significant opportunity which will leverage the long-term vision of the council and delivery capability of Muse, alongside the innovation pedigree of the university.

“This is a once-in-a-generation opportunity to drive economic growth and job creation in County Durham and the North East.”