Research has estimated that 14,000 jobs will be created

The contract was announced on Thursday as Liverpool set out its plans in the build-up to its year as European Capital of Culture in 2008.

The agency's investment over the next four years will help the city to deliver its cultural programme.

Liverpool launched its Delivery Plan at a reception at the House of Commons.

Research has estimated 14,000 jobs will be created.

'Positive impact'

The Northwest Regional Development Agency is one of nine regional development agencies established by the government to develop the English regions.

Its official '08 partner agreement follows the securing of sponsorship deals by the culture company with law firm Hill Dickinson, United Utilities, Radio City 96.7 and Enterprise PLC.

City Council leader Mike Storey said: "The agency's support recognises the positive economic impact Capital of Culture will have in Liverpool and across the region, as new businesses are established, new jobs created and the physical landscape of the city is transformed."

Liverpool Culture Company recently announced a �4.5m funding package for cultural projects, including the Creative Communities initiative, which the company says is the largest programme of public and community art in the UK.