Welcoming progress on the Tay Cities plan, which will see Dundee, Perth and Kinross, Angus and Fife councils working together, Mike Galloway, Dundee City Council’s city development director, said the deal could have an impact on Dundee which is ten times greater than the waterfront redevelopment.

Reports set to go before councillors in each of the authorities in the coming weeks will reveal considerable progress in advancing the bid and the draft proposal which outlines the vision and strategy for the proposed Tay Cities Deal.

If the bid is successful, then the three Tayside councils and north east Fife could share £400 million to improve infrastructure, which could also be supplemented with funding from the Scottish Government.

Speaking at the fifth annual Dundee Economic Summit yesterday, Mr Galloway said there has been a “fantastic” response to the Tay Cities plan from both the UK and Scottish Governments.

He added: “Everyone thinks the waterfront has been a turning point for Dundee but there has always been something happening in Dundee.

“I think the Tay Cities Deal is a much, much bigger opportunity than even the waterfront.”

Councillor Ian Miller, leader of Perth and Kinross Council, said: “The Tay Cities Deal will assist in bringing forward key economic projects in the Tayside area to promote employability, skills and investment in jobs. The work involved in getting us to this stage represents an incredible commitment by the officers and leaders of all four local authorities, and demonstrates just how important this deal is for Perth and Kinross and our partners.

“I look forward to working with both governments and the other three local authorities to take this forward to deliver on the potential which the Tay Cities Deal offers to deliver investment that will make a significant contribution to economic growth across the area.”

Ken Guild, leader of Dundee City Council said: “There is no question that together we are stronger, and by pooling our resources and knowledge the four partners in the Tay Cities Deal can bring forward a viable, flexible and robust strategy to present to both governments.

“We will take our time to ensure that we are submitting something which is thorough and which we are all sure will have the desired positive effects across the area.”

Fife Council’s leader, Councillor David Ross, added: “As previously agreed with partners, Fife Council is very supportive of the Tay Cities Bid. We continue to work with the partner local authorities and with other stakeholders from business, the academic sector and key agencies on the development of a bid that will make a significant contribution to the economic growth of the Tay Cities area, including Fife, as well as reducing inequality to create a more prosperous future for all.”

Angus Council leader, Councillor Iain Gaul welcomed the progress on the City Deal.

He said: “Angus plays a key role in the Tayside economy, both as host to many world class industries, such as manufacturing, tourism and agriculture and in providing a first class quality for life and living for all.

“The Tay Cities Deal presents all of us in Tayside with an opportunity to work collaboratively across the region and invest in key infrastructure, tourism and economic growth projects that will enhance our area.

“We hold high aspirations for Angus, working across boundaries, harnessing our key strategic transport linkages and have high expectations about what our partnership working can achieve.

“The City Deal has unlocked a new set of discussions that have enabled us to stretch our horizons and aspirations to transform Tayside. We need Scottish and UK government’s to back our ambitions with substantial funds to unlock potential and growth.”

In 2014, Glasgow became the first city in Scotland to benefit from the scheme, receiving £1.13 billion of investment for key transportation and employment initiatives.

More recently, Aberdeen was awarded £250m as part of a wider £504m City Deal for the North East, including investment in road and rail and crisis cash for the oil and gas industry.

A City Deal has also been agreed for Inverness with another in the pipeline for Edinburgh.