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Manchester has been given 拢10m in funding and a new ministerial group for regeneration after the announcement that the city鈥檚 supercasino has been shelved.

English Partnerships has earmarked around 拢10m for the expansion of Sportcity, which was originally built to stage the 2002 Commonwealth Games and is being developed as the largest concentration of sports venues in Europe.

The development is expected to create 1,600 new jobs as part of East Manchester鈥檚 regeneration drive. The government also said it will extend until 2014 the life of the New East Manchester Urban Regeneration Company, which is to invite proposals for the site.

Hazel Blears, the communities secretary, will chair the ministerial group, which will include representatives from Manchester city council and a cross-section of government departments.

It will support city leaders in bidding for long-term projects such as an application to the Transport Innovation Fund to increase public transport capacity, a new transport hub to provide more rail links and three new skills academies.

The announcements follow the publication of a review on alternatives to casino-led generation.

Blears said: 鈥淭his 拢10m boost for Sportcity will unlock huge sporting potential in East Manchester and attract visitors from across the UK and beyond. It鈥檚 another piece of the jigsaw in Manchester鈥檚 regeneration success story, and can help to create new jobs.

鈥淭he new ministerial group will also ensure that success continues well into the future by giving the government鈥檚 support to city leaders as they drive forward new jobs, more skills and better transport for our communities.鈥�