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A new or redeveloped Old Trafford can cement Manchester’s place as “the global capital of football”, the city’s mayor Andy Burnham has said.

Manchester United are set to make a decision by the end of the season on whether to redevelop the existing stadium into an 87,000-capacity venue or build a brand-new 100,000-capacity ground.

The club will pay for whichever option they eventually choose, but the initiative has been boosted by the UK Government and Trafford Council both giving their backing to plans to provide public funds to regenerate the area around the stadium over recent days.

Burnham said the project, which also involves relocating freight terminals, will benefit other parts of the north-west, as well as his city.

He told BBC Breakfast: “This truly… it’s one of those rare projects that’s a win-win, the benefits will be felt far and wide.

“On the east of Manchester, if you look at what’s happened there – and the Commonwealth Games helped that with public money at the time – Manchester City have taken that and poured so much investment in themselves to improve the east of Manchester.

“Imagine that being balanced on the west of Manchester with another major football campus.

“This, without a shadow of a doubt, will be the global capital of football in the rest of the 21st century.”

A UK Treasury statement on Saturday evening said Chancellor Rachel Reeves was championing the Old Trafford project as “a shining example” of the Government’s plans to promote economic growth.

Initial findings into the proposals – which as well as a potential new stadium also cover the development of new residential, retail, leisure and business premises – suggest they could deliver an extra £7.3billion gross value added to the UK economy, with more than 90,000 employment opportunities.

As part of the consultation process with the local community, it was found more than 60 per cent of 1,000 residents surveyed felt the project could bring positive benefit to the area.