ArtReach Consultants has been given the cash to oversee festivals and the creation of cultural zones in Derby, Nottingham and Leicester.

The grant was handed over by the Millennium Commission and Arts Council to help fund new schemes and existing projects in the region.

Project leaders said it would help boost the area's reputation.

Michaela Butter, spokeswoman for the region's Arts Council, said: "It will help us bring new dimensions to existing work in the East Midlands, and enhance our reputation nationally and internationally."