MANCHESTER is set to cement its reputation as the world's cycling capital with a £20m BMX arena.

The facility, with seats for up to 4,500 people around a 100m by 70m track, would be the training base for elite British athletes in the run up to the London Olympics in 2012.

It is due to be built in a car park of the existing Velodrome at Sportcity, East Manchester - the base for the all-conquering British Olympic track cycling team. The two buildings will be physically linked with a single reception, plus a restaurant and shops.

Manchester city council and regeneration company New East Manchester have invited companies to bid for a contract worth £20.75m to build the new BMX centre.

Once tenders are in, a preferred partner will be selected and a funding package worked out with government.

The centre was originally promised by the government as part of a compensation deal when Gordon Brown pulled the plug on plans for Britain's first supercasino at the site.

Tender documents show that the track will be fully enclosed under a timber roof. There will also be two four-court sports halls for community use.

The arena will have space for 2,000 permanent and 2,500 temporary seats and has been earmarked to host 'national and international BMX competitions'.

BMX - short for bicycle motorcross - racing is one of the world's fastest-growing 'extreme' sports. It made its Olympic debut in Beijing, China, last year, when gold medal favourite and world champion - Cheshire's Shanaze Reade - crashed out of the women's final.

The last BMX world championships, also held in China, attracted 300 competitors from more than 30 countries.

Eddie Smith, chief executive of New East Manchester said: "We are clear in our aspiration to deliver a world-class indoor BMX centre that will offer a home for the British BMX team for the 2012 Olympics and beyond.

"Athletes who benefited from Sportcity facilities won over 60 medals at the Beijing Olympic and Paralympic Games last year.

"We are confident that with the right facilities we can help even more talented athletes achieve their dream. As part of the scheme we also want to provide state-of-the-art community facilities for our young people.

"We're now seeking a contractor to construct the building so that it will be available for the end of 2010 in readiness for training for 2012.

"This is just one ingredient in a whole series of plans that will make Sportcity a leading international sporting destination and ensure the north west plays a major part in national sporting achievement in the future."

Britain's Olympic track cycling team won seven of 10 available gold medals in Beijing.

In total, the council is looking to spend £300m of private and public money to transform the Sportcity site.

They are demanding 'world-class' attractions to replace the casino, which would have created 3,000 jobs.