Bosses at Teesside Airport are close to agreeing a deal that will see millions invested in the business.

The airport, currently run by a conglomerate of local councils, is close to seeing �10m put into the business by an as yet unnamed private partner.

It is hoped the move will bring Teesside Airport - controlled by the area's local authorities since it was founded in 1964 - out of the shadow of Newcastle Airport.

It is thought a private-sector company will either take a big stake in the airport, six miles east of Darlington, or will agree a long-term franchise to operate it.

'Good airport'

Airport managing director Hugh Laing said: "We have spent the last couple of years looking at the product we have here, and how to develop that.

"We have a good airport, but we need to develop it.

"We have been talking about improving the access roads with regional development body, One North East, and the next thing is to improve the buildings."

He said that because the airport was owned by the local authorities, they were not able to borrow cash on the capital markets.

Mr Laing said: "We started last September to look for a partner, and we hope to name them early in 2003.

"They will work with us to develop the terminals and the building itself."