Plans for the expansion of the Guggenheim Museum in Bilbao, Spain, have moved a step forward as the Council of Biscay has announced it will hold a design competition for the project this year.

The scheme - which would involve the building of a second site around 40km from Bilbao in the Urdaibai Biosphere Reserve - was given the thumbs up by a feasibility study ordered by the council and the Guggenheim Foundation Trust.

The same report estimated that the 5,491sq m project would cost around 133m euro (£116.7m) and take three to four years to build.

Juan Ignacio Vidarte, director general of the Guggenheim Museum Bilbao, said: "With the expansion in Urdaibai, the museum is not just trying to have access to some additional exhibition space. The goal is to embark on new projects, strengthen relationships and alliances and develop an innovative museum experience based on the integration of art, nature and environment through a combination of creative initiatives."