Canary Wharf Chief Executive Sir George Iacobesu is to lead a government initiative to create 10 new English development corporations, and Manchester could be among the first wave.

"[Iacobescu] is working with the government to progress and develop proposals for up to ten new development corporations or similar delivery bodies around the U.K," a Treasury statement said. "These are areas which could be regenerated on a large scale, boosting the local economy by offering space for housing and offices, and also bring a network of businesses together."

Successful bids could receive government funding, Treasury Chief Secretary Liz Truss said. Truss thinks Manchester could be an ideal spot for a zone and hopes that the area will be amongst those submitting ideas.

The Treasury website gives no further details.

Development corporations, which took planning and development powers from elected local councils, were used by Conservative governments in the 1990s. The Central Manchester Development Corporation operated from 1988 to 1996 and its projects included Castlefield, the Great Bridgwater Street office scheme and concert hall, and the paving and lighting of Canal Street.

The official public spending watchdog, the National Audit Office, frequently took a dimmer view: from 1993 onward it produced a series of reports questioning the outputs of jobs and floorspace, and suggesting the figures were exaggerated.