A £30m deal has been struck between the HMS Trincomalee Trust, Hartlepool Borough Council and local development company Jomast.

The 990-year lease of the land adjacent to the Wingfield Castle paddle boat, which is owned by the trust, will secure the long-term future of HMS Trincomalee, Britain's oldest floating warship.

If Jomast's planning permission is successful, the barren Waterfront Avenue site could be filled with apartments, housing for the elderly, cafes, restaurants and offices – creating hundreds of jobs.

The lease of the three-acre site will also see the trust repay loans totalling £200,000 to the council.

A delighted Bryn Hughes, general manager for the Trust, called the deal a "win- win" situation as all parties will benefit along with the people of Hartlepool.

He said: "This is a very important deal and secures the ship, which is our priority, for a very long time.

"We need to raise funds in as many ways as possible, so as well as being an exciting development that will bring the area to life this is also a big fundraiser for us.

"With the Tall Ships' Races coming, it is vital we keep Hartlepool's tall ship in fantastic condition and we will be investing this money back into our site."

Last year, Jomast was selected as the preferred developer but only last week lengthy talks were concluded between the three organisations.

Hartlepool Mayor Stuart Drummond said: "All of the interested parties have been working overtime to conclude this land deal and I'm delighted that agreement has been reached.

"Jomast's proposals are a major part of the continuing efforts to further regenerate our town and the deal also provides financial stability for years to come for HMS Trincomalee."

Stuart Monk, Managing Director of Jomast, added: "I am delighted that we have been able to conclude these arrangements with the trust and the council."

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