Glasgow will receive �248m of public money for the scheme

The city council said the Clyde Gateway partnership hope to help create 21,000 jobs and more than 10,000 new homes.

The project also includes relocating Scotland's national sports agency from Edinburgh to Glasgow's east end, one of the main beneficiaries of the project.

The communities minister said the scheme, which will also benefit South Lanarkshire, would bring prosperity.

Speaking at the official signing of the partnership agreement, Malcolm Chisholm said: "This is a momentous day for the communities on both sides of the Clyde.

"A huge amount of energy and resources are now committed by the Scottish Executive, Communities Scotland and all our partners to make the regeneration of the Gateway a great success story that all Scotland can be proud of."

The new national sports arena will be built on this east end site

Glasgow City Council leader Steven Purcell said: "This long term commitment is about investing in people - getting those living in the east end back into the labour market, to reach their full potential.

"It is also about addressing the issues of poverty, low educational attainment and poor health.

"We need to do this on a big scale, be bold and that is what we hope to achieve through the Clyde Gateway project."

The project will see more than 800 hectares of land transformed by 2026, with �248m in public money to be provided.

The council said this investment would pave the way for a further �1.4bn in private development.

Councillor Eddie McAvoy, leader of South Lanarkshire Council, said: "Derelict and contaminated land, which has in the past been viewed as a blight on the Clyde Gateway area, is in reality an untapped resource.

"This new partnership gives us the opportunity to start using that resource.

"Investment and hard work can turn such areas into a valuable community facilities, desirable sites for housing or market leading business locations."

Both councils are holding a consultation with people living in the project area to find out what their priorities are.