The cash has been made available due to the merger of area committees, which resulted in an underspend, according to the city council.

Community groups, voluntary organisations and council services are being urged to bid for a share.

It is hoped that the money will particularly benefit the elderly, children and the environment.

Councillor Nigel Todd, chairman of the Inner West Area Committee, said: "This is a very good start to 2005.

"We are determined that this money should leave a long-term legacy by providing local people with lasting skills enabling them to get more involved in the development and future success of the West End."

Applications need to be submitted to Newcastle City Council by Monday 4 March, so the funding can be allocated by the end of the current financial year.