The gallery is due to be completed in 2006

The money will allow construction work to begin on Middlesbrough Institute of Modern Art (Mima).

The �19.2m project to create a new art gallery and civic square, will transform two hectares of brown field land in Middlesbrough town centre.

Work on the scheme is due to be completed in 2006.

Mima will be a world-class modern art gallery, based upon the success of Gateshead's Baltic complex and is expected to attract thousands of art lovers to the Tees Valley.

The new facility will be the only venue in the country to offer a combined programme of modern art and craft from 1900 to the present.

Our aim is for people to take a new look at modern art and a new look at Middlesbrough Middlesbrough Borough Council

Designed by Dutch architects Erick van Egeraat Associated, Mima will have eight exhibition spaces, an education suite, auditorium, conservation studio, workshops and art stores.

Jonathan Blackie, regional director of Government Office for the North East said: "There is a real potential for Middlesbrough's art gallery to become the regional collection-based centre for modern art.

"The Baltic has successfully brought thousands of visitors from outside the region and with the opening of the gallery we are further strengthening our reputation as a cultural region.

'Exciting venue'

"It is essential that we continue to develop high profile cultural attractions in the region and continue to add further strength to marketing the region as a prime tourism centre."

A spokesman for Middlesbrough Borough Council said: "This is excellent news for Middlesbrough. The new gallery is key to our plans to revitalise the town.

"Mimi will provide an exciting new venue for the people of Middlesbrough and the wider region.

"Our aim is for people to take a new look at modern art and a new look at Middlesbrough."

The project has also received the backing of Arts Council England and One NorthEast.

The project has also received a �4.6m grant from One NorthEast, �4.5m from Arts Council England, �4.67m from Middlesbrough Council and private investment of more than �600,000.