A £7MILLION European cash windfall could pave the way for East Lancashire's first university.

Two councils have worked together to attract the funding, which will be used to create the area's first non-industrial business park.

Developers are already lined up to transform the 277 hectares site along junction 6 of the M65 from green fields to a technology park.

It will be designed with technology and 'new knowledge' sector firms in mind and will be known as the East Lancashire Gateway.

Graduates will be encouraged to take part in an 'incubation' scheme where they will receive financial support to turn a business idea into reality. They will also receive assistance from existing businesses on how develop their inventions.

And the two councils behind the project -- Hyndburn and Blackburn with Darwen -- are also aiming to bring a university to the site.

MPs have been campaigning for the area to have a university presence for more than two years.

Nigel Rix, director Hyndburn Council's regeneration company Hyndburn First, said: "This park will be very important to helping East Lancashire move away from being reliant on manufacturing.

"It will be the first non-industrial business park in the area, with the aim being to encourage technology firms which offer high-skilled, well-paid jobs into the area.

"The next step will be for us to try and attract a university on to the site. We want to create an environment where new businesses can prosper and where learning is also a key."

The land was owned by the Dunkenhalgh Trust, but has been handed over to the two councils.

Leicester-based firm Helical, which is also redeveloping Accrington Market, is drawing up plans for the site. The project is expected to cost around £30million, with most of it coming from the private sector. It has been designated a key strategic area by the North West Development Agency.

The £7million awarded by Europe means it will become an Economic Development Zone, and is expected to create up to 2,000 jobs by 2008.

The money will be administered by Blackburn with Darwen Council's regeneration department.

Coun Ashley Whalley, executive member for regeneration, said: "This location was chosen as it has a number of strengths including an already established business community, physical qualities and close proximity to large residential areas.

"The project will also help local residents to access these new employment opportunities by linking with local employment and training initiatives and improving public transport services to the area.

"By attracting high growth industries with quality job opportunities, local people can begin to enjoy some of the benefits that other areas have taken for granted."

Across the North West, £120million has been awarded, helping to create more than 33,000 jobs.

Employment regions minister Alan Johnson said: "The money is vital for the competitiveness of the region, and its impact, in terms of job creation, wealth and economic confidence, will be massive."

The cash boost comes after months of redundancies from traditional East Lancashire industries.

Thousands of jobs have been lost at long-established firms such as Leoni and Phillips.

In Blackburn, council chiefs have expressed their desire to create better paid jobs.