Schools in England and Wales are to receive lottery money to build new sports facilities and modernise existing ones.

The National Lottery's New Opportunities Fund handed out �541m on Monday in the first tranche of a �750m UK-wide programme.

England will receive more than �495m and Wales in excess of �46m.

Funding allocation by region

West Midlands �61m East Midlands �40m North-west �89m Yorkshire and Humberside �60m North-east �37.9m South-west �35m South-east �51m Greater London �81m Eastern region �38m Wales �46m

Separate announcements for Northern Ireland and Scotland will be made early next year.

The money will also be used to help promote sport and use of the facilities in the wider community, and to improve outdoor adventure equipment for young people.

But the director of the National Playing Fields Association, Elsa Davies, said such a gesture was meaningless if green and open space was lost to development.

She had seen statistical evidence to suggest the situation was "absolutely terrible" and said current planning regulations were insignificant.

"It's all very well having more money to have better equipment and so on, but if we don't have any playing fields where pupils can get out into the open air and enjoy sports and recreation, then it's going to be a pretty poor show for our youngsters," said Ms Davies.

"Playing fields are absolutely fundamental when one thinks of physical education and games in schools," she said.

Blair on sport

Prime Minister Tony Blair, who met head teachers and leading sports figures to discuss methods of improving sport in schools, said the funding would create "vast new opportunities".

Sport is a key weapon in our fight against school exclusion, crime and drugs. Tony Blair

"Every young person deserves the chance to participate in sport and PE of the highest quality. Modernising school facilities is a crucial part of creating that opportunity," he said.

"Sport is also a key weapon in our fight against school exclusion, crime and drugs, giving thousands of young people the chance to choose a positive, healthy lifestyle."

Baroness Jill Pitkeathley, who chairs the fund, said the grants would "substantially change" the face of sport provision in schools and communities.

"In providing many more people, particularly in disadvantaged areas, with the opportunity to engage in a range of physical activities, we can help build a more inclusive and healthier society."

Education authorities will consult local schools, national sporting organisations and other strategic partners to co-ordinate spending plans for the grants.