The bank already employs 1,250 workers at the city's Doxford International Business Park.

The additional 220 part-time and 36 full-time jobs are due to be in place by the end of the year.

The company said it was being forced to expand its customer services operation on Wearside because of growing demand for telephone banking.

Skilled workforce

Darren Farnell, head of customer service at Barclays' Sunderland contact centre, said: "Our expansion plans are great news for the Sunderland site as it brings new job prospects and allows people to balance a career and family commitments."

Ged Fitzgerald, chief executive at Sunderland City Council, added: "Coming so soon after Northern Rock's intention to build a new office at Rainton Bridge, this is another fillip for the city.

"Sunderland boasts a highly skilled workforce and these are value adding jobs that demonstrate Barclays' long-term commitment to the city and our position as a world-class location for blue chip employers."