The BBC confirmed today that several departments will relocate from London to Peel Holdings' MediaCity UK scheme in Salford Quays

The corporation's governors chose the Salford site ahead of a site near Whitworth Street, near to its existing Manchester site in Oxford Road, central Manchester.

The BBC's sports and childrens department, Sport, New Media, Five Live, Five Live Sports Extra and research and development are expected to move to Salford in 2010. The corporation will close the Oxford Road site and build a new base by 2010. Other media providers will be invited to take up space in the new centre as part of a media zone.

The decision follows the government's confirmation of the licence fee settlement until 2012. The BBC said the move was affordable and was prompted by a 'vision for a less London-centric BBC'. The deal is subject to certain contractual agreements.

The Northwest Regional Development Agency (NWDA) said the move to Salford would have a huge impact on the area's economy. 'Whilst the decision is obviously disappointing for the unsuccessful team, the choice of one site allows the project to move forward swiftly,' said chairman Bryan Gray.

The NWDA said the move would create up to 10,000 jobs and add £170m to the regional economy.

Mark Thompson, director general of the BBC, said the move would 'save money'’ and was the 'right thing to do'.