Manchester City is at the heart of a £1bn plan to create a world class sports and leisure complex and elevate the club into the global elite.

The massive scheme will transform one of Manchester's poorest areas and create thousands of jobs for local people.

Two-hundred acres of land around the Blues' Eastlands stadium will be redeveloped with plans for a club training base to rival AC Milan's.

The M.E.N has also learnt that an extension to the City of Manchester Stadium's north stand, which would boost capacity to 60,000, is on the cards.

• The sky's the limit for City

Community leisure facilities and visitor attractions – including shops, a luxury hotel and restaurants – are also expected to feature in the scheme.

The plans are expected to attract £1billion worth of investment from private backers and Manchester City's billionaire Abu Dhabi owner, Sheikh Mansour, who took over in 2008.

The scheme is likely to provide a huge boost to the club's international profile and attendances as part of plans to build the City 'brand' around the globe.

The club has entered into a unique partnership with the city council and regeneration chiefs at New East Manchester to deliver the huge project - cementing the Sheikh's long-term commitment to the area.

The earliest stages of the development – which will be built around the City of Manchester Stadium – will see a market place-style fan zone, named City Street, created on the stadium approach in time for next season.

Work will also be carried out to 'dress up' the ground and an illuminated halo installed over the club shop.

Officials hope work on the longer term elements of the scheme - which incorporates the site of the failed supercasino bid and 59 acres of land bought by City's owners in neighbouring Openshaw West - will begin within the next five years.

Sir Richard Leese, leader of the city council, said: "The City of Manchester Stadium has been a credit to the city and this further investment will enable local people who can work, to work, will give our young people the best possible start in life and will make east Manchester a place in which to work, invest, live and visit."

A major feature is expected to be a world-class training complex similar to AC Milan's Milanello - regarded by many as the best in the world. It includes training pitches, a sports-science centre for the treatment of injured players and accommodation for youth team members.

Manchester City has spent 14 months studying the world's leading sporting facilities as part of their research.

And feasibility studies to explore how the 48,000-seater stadium can be extended to accommodate 12,000 extra fans have been carried out.

That would make it the fourth biggest ground in Britain after Wembley, Old Trafford and Arsenal's stadium, the Emirates.

Other features of the development are still open to discussion but could include community leisure facilities, restaurants, shops and a hotel.

Residents living in the area around Sportcity received notification at the start of the year that 12 months' work – costing several million pounds – will be carried out to ready the land.

A three-way agreement committing to the project has been signed by Manchester City chief executive, Garry Cook, Sir Richard, and New East Manchester chair Simon Bate.

It follows months of top secret talks and speculation among fans about the future of the land.

Sir Richard said: “A football stadium brings people in significant numbers maybe 30 days a year.

“We want a year-round destination that enhances the reputation of the city as a visitor destination and City want to build a global brand.

“Those fit well together and discussions between the council and the club have been ongoing since the owners first came to Manchester.

“The club has made it very clear that they have a long-term commitment to the area and its regeneration and part of the agreement we've signed enshrines that.

“We are very clear that we want activities on the site that create jobs for local people at a range of levels. That is absolutely essential and will contribute to the quality of life of the east Manchester community.

“The city council will also want to look at the opportunity for leisure facilities that can be used by the wider community.

“We are looking afresh at the site and treating all 200 acres as a whole. We're not looking at piecemeal development. That doesn't mean previously looked at ideas won't happen but we're effectively drawing a line under that.”

He said there had been no discussions about selling the council-owned stadium, which is rented by the club, adding: “It's not on our agenda.

“We get a very healthy rental from the stadium which supports all the other sports facilities on that site.”

Manchester City chief executive, Garry Cook, said: "Manchester City has been and always will be at the heart of the community it serves in the city of Manchester.

“The longer term considerations for the area reflect the long term commitment of our owners to the club and the community it serves."

Simon Bate, chair of New East Manchester Ltd, said: "The City of Manchester Stadium and Sportcity facilities have been central to raising the profile of east Manchester and have inspired confidence and new investment here. The creation of a destination leisure opportunity in east Manchester has been a core element of our vision for the area and our ability to give real consideration to this now is truly exciting."