BOSSES at the University of Manchester and neighbouring UMIST have agreed to merge to form the largest university in the country from September next year.

The decision came after the government stepped in with an '82million package of grants. Last night the governing councils of both universities met separately to vote for the merger plan.

Members were told that the Higher Education Funding Council for England, the Office of Science and Technology and the North West Development Agency have agreed to hand over '65million of additional cash. A further '17million is to be provided by the government's Science Research Investment Fund.

The level of grants had been the only barrier to the plans, which are expected to cost '240million over the next 10 years.

In a joint statement, the vice chancellor of the University of Manchester, Prof Sir Martin Harris, and the principal and vice chancellor of UMIST, Prof John Garside, said: "We are delighted that central government and the North West Development Agency have provided the practical financial support to help the universities to realise their vision. The extra investment on this scale is unique and unprecedented.

"We now have a solid foundation on which to build a truly world class university that will continue to attract the best students, the most talented staff and significant research funds from around the world." Supporters of the merger - which was revealed to staff 12 months ago - say the new institution will have the breadth and quality of research and teaching to attract staff and students from around the world. It would have an annual income of '420million and within a decade its presence could create thousands of jobs in the region.

It will, they say, cut competition and duplicationbetween the two universities, streamline administration and create a clearer identity, particularly in international markets. It will have 34,000 students.

Science Minister Lord David Sainsbury said: "The merger will establish a centre for world-class research in Manchester, both in terms of size and resources. This is a real boost for UK research and for the north west economy." A vice chancellor is expected to be appointed by autumn. Tweet