A £3M bail-out package will be used to secure a vital stake in Newcastle’s Science Central after city leaders stepped in to save the development.

The future of the site was put in question when the Government scrapped regional development agency One North East, which had a one-third share worth £8m in the overall project, along with Newcastle University and Newcastle City Council.

Science Central is set to see a major new building created on land next to St James’ Park to house new green energy firms.

Ministers stalled the scheme when they began the agency’s winding up, but now it has emerged that the university and council leaders have spent £3m to take control of their share in the project.

It is the first of the RDA’s assets to be sold on since the Government announced the organisation would be abolished in March 2012.

Council leader Nick Forbes said: “The abolition of One North East has been a blow to the region, but we are determined to do all we can to keep up momentum on our key economic priorities.

“It’s vitally important that the regional development assets are retained for the benefit of the region. I’m pleased we have been able to secure that in Newcastle.”

Partners want to use Science Central to attract hi-tech businesses to the city. It will also be the site of a multi-storey science block, set to be among the greenest in the UK.