Manchester city council has agreed to invest in a Northern Quarter regeneration programme in the hope of attracting creative and media companies.

It has entered into an agreement with developer Argent to launch the first phase of The Hive in Stevenson Square.

The 76,000 sq ft development will provide space for the creative industry and act as an inducement for inward investment.

An economic impact study estimates that The Hive scheme will deliver 440 full-time jobs by 2013, boosting the city's economy by £9.3 million every year.

David Partridge, joint chief executive at Argent, said his company is "extremely enthusiastic about talking The Hive forward, bucking the trend in today's difficult business climate".

The council's City Strategic Plan 2008-2012 identifies the crucial role the Northern Quarter can play in meeting the needs of the media and creative sector.

In related news, design agency Glorious Creative, based in the Northern Quarter, has been asked to create an advertising campaign for a consortium of regional museums and galleries, including the Imperial War Museum North and Urbis.