Newcastle's Dance City will use the money to rebuild a new complex away from its present Peel Lane site, with new studios, a dance lab, education centre and cafe.

Cash for the project has come from the Arts Council, Newcastle City Council and a number of charitable trusts.

Construction work will be marked with a turf cutting ceremony on 27 May.

Janet Archer, director of Dance City, said: "Dance City will be moving its central base from its current building, which whilst being much loved, does not provide adequate public facilities and has no real performance space.

"The current building is also not accessible in its physical layout and is difficult to find if you don't already know where it is."

The new centre will be located adjacent to the St James' Boulevard within the Grainger Town district of Newcastle.

Peter Hewitt, chief executive of the Arts Council of England added: "Dance City has played a crucial role in the development of dance in the North East, establishing key initiatives to extend and enhance the profile of dance and strengthen its place in the community.

"This new state-of-the-art building will provide a focal point for dance in the region, enabling Dance City to build on its ambitious programme of work."