Milton Keynes Partnership (MKP) and Milton Keynes Council have announced that they have chosen Gaming International and ClearChannel Entertainment as the preferred developer of the Milton Keynes Bowl.

The consortium plans to invest £20m in redeveloping the existing 65,000-capacity arena to increase it to 75,000, as well as adding a 2,000-capacity Bowl Pavilion for indoor events and an international standard skateboarding display arena.

A new 3,500-capacity Milton Keynes Greyhound Stadium featuring bars and restaurants is also planned as well as a 4/5-star, 120-bedroom hotel and a small sports pavilion.

Improvements will also be made to the Route 51 cycle route and wildlife corridor.

Gaming International and ClearChannel Entertainment will now seek planning approval from Milton Keynes Council. If this is achieved within three to six months, the redevlopment is scheduled for completion by the end of 2007.

Sir Bob Reid, chair of MKP – the body responsible for development and investment in the city and a sub-committee of English Partnerships – said: “This is an exciting strategy that will reinvigorate the National Bowl, attract events of national significance and provide opportunities for local events and daily access for MK communities.”

Gaming International, the second largest Greyhound and Speedway racing operator in the UK, saw off competition in the final stage of the tendering process from Inter MK, the developer of the new Milton Keynes Stadium and owner of the Milton Keynes Dons Division One football club.

Inter MK's scheme reportedly included a 90,000-capacity Milton Keynes Bowl, a winter training ground for the MK Dons and a school of excellence-style regional sports facility with 420 apartments which could have been used as a training camp for teams in the run up to the 2012 Olympics.

Two other consortia, Citygrove Securities and Cine UK, and Orion Land and Leisure and SMG Europe, had also made an initial shortlist of four groups bidding to redevelop the site.