Manchester Airport is to undergo a £400m development and create more than 7,000 jobs. The project comes as part of the UK government’s new scheme to create 21 new Enterprise zones to stimulate economic growth and employment.

The development would be one of the first four Enterprise Zones, and be built on a brown-field site. Work on the first phase of so-called “Airport City” is scheduled to commence in 2012 after a consultation period.

The redevelopment of the 60-acre site to the north of the airport will be completed in the next 10 to 15 years, a spokesman for Manchester Airport Group said.

John Atkins, the managing director of Manchester Airport Group Developments, said:

“We welcome the agreement of the Council Executive as it allows us to prepare for a start on site early in 2012.

“The designation of the Airport City as an Enterprise Zone last week underlined the importance of making quick progress on the site and will allow us to move ahead with the development and infrastructure framework.”

Manchester Airport Group said it aims to compete with other European airports such as Amsterdam, Barcelona and Dusseldorf. It is currently the UK’s busiest airport outside London in terms of passenger numbers.

The programme will include the construction of to office buildings, a hotel, housing and leisure facilities, plus a new road link to Terminal Two and a new Metrolink extension to the airport.

The parent company, Manchester Airport Group, is owned by 10 local councils, and also owns East Midlands, Bournemouth and Humberside airports.

The group made a profit of £36.9m after tax in the last financial year.