MGM's Project CityCenter could transform Las Vegas

Up to 4,000 luxury homes - the first residential properties in the heart of the gambling capital - will be built, as well as a casino, hotels and shops.

The CityCentre development on a 66-acre site is the third new real estate project planned for Las Vegas.

The city has enjoyed a tourist boom since the 1990s when massive themed resorts replaced its original casinos.

A record 37 million visitors are expected to visit the city in 2004.

Jobs boost

MGM Mirage's board gave the go ahead for the plan as the company awaits US government approval for its merger with Mandalay Resort.

About 7,000 construction jobs will be created when the project gets under way.

A further 12,000 jobs will be created once it is completed in 2010.

MGM Mirage said the development would be one of the largest privately funded real estate projects in the US.

Analysts said the plan appears to mark a new departure for MGM Mirage, which will control about 50% of the main Las Vegas hotel market after its merger with Mandalay.

"They've been more active acquirers than developers in the past," said John Mulkey, gaming analyst at Bear Stearns.