Manchester United have confirmed that the UK government has backed plans to regenerate the area around Old Trafford.

Mayor of Greater Manchester Andy Burnham has earmarked Old Trafford for significant regeneration, with plans for either a new 100,000-seat stadium or an 87,000-seat refurbished arena. The news comes a week after the Old Trafford Regeneration Task Force concluded that redevelopment of United's home ground could increase its capacity to 87,000, while a brand-new stadium could accommodate up to 100,000 fans.

Burnham has revealed that work to redevelop the land around the Theatre of Dreams will go ahead regardless of the Reds' decision to go for a new arena or refurbished stadium. His office believes the scheme ‘represents the biggest sports-led regeneration scheme since the London 2012 Olympics’.

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And United have confirmed that the regeneration plans have received government backing with the Chancellor of the Exchequer, Rachel Reeves, championing it as 'a shining example' of the government’s plans to promote economic growth. United would be responsible for the stadium development, but the club say support from public bodies would be needed for areas of the project including improved transport infrastructure and housing.

“The delivery of a world-class stadium can be the catalyst for major regeneration of an area of Greater Manchester which requires new investment to thrive again," United CEO Omar Berrada said via the club's website.

“We cannot achieve that wider aim on our own, which is why we welcome the announcement by the Chancellor and the ongoing support of the Mayor of Greater Manchester and Trafford Council. If we work together, there is a once-in-a-lifetime opportunity to create a landmark project around Old Trafford that the whole region can be proud of.”

Andy Burnham said: “With our devolved powers we’re mobilising the whole Greater Manchester system to lock in growth for the next decade and reap the rewards for our city-region and UK plc.

“The project around Old Trafford represents the biggest opportunity for urban regeneration this country has seen since London 2012 and is a key part of our 10-year plan to turbocharge growth across Greater Manchester.

"We look forward to working with the Government on moving freight away from the site around Old Trafford to new locations to open up capacity for our rail network and unlock massive regeneration potential – delivering benefits across the whole of the North.”