Prime minister Gordon Brown and a taskforce of ministers have met with Manchester City Council leaders for the first in a series of bi-monthly discussions about the development of new projects for the Sportcity site.

The aim is to invest in new developments that will help to compensate for the loss of the regional super-casino project in East Manchester.

A report commissioned by Brown in 2007 discovered that it would be challenging for any alternatives to achieve the scale of economic benefits that could be secured through the regional casino which was expected to create between 2,700 and 3,500 new jobs.

In a private meeting with leaders of Manchester City Council, Brown stated he is keen to accelerate the progress of a number of Sportcity projects, proposed by local government secretary Hazel Blears, which include an Olympic-standard BMX centre and a national skills centre for hospitality and facilities management.

The taskforce, consisting of eight cabinet ministers; the regional minister for the North West; the leader of Manchester City Council and the chair of the Northwest Regional Development Agency, is also considering the development of digital and animation businesses and the potential relocation of government functions.

Manchester City Council considered taking legal action against the government following the retraction of the casino plans, but Sir Richard Leese, leader of Manchester City Council, says “Manchester can gain more from working with the government…and therefore will not take further action”.