A new entertainment venue to rival the Manchester Arena could be built next to the Etihad stadium, town hall documents have revealed.

International investors are weighing up plans for an indoor arena with a capacity of more than 20,000 people, a council report says.

The Manchester Arena has a capacity of 21,000.

A report going before next week’s executive meeting says that the growing global success of Manchester City and the sporting and transport infrastructure around the Etihad Campus has influenced investors and entertainment operators of the area’s potential.

The draft framework for the area highlights a large arena as 'one such opportunity'.

The report says: “International investors and operators see Manchester as one of the few cities in Europe with the ability to successfully host more than one large arena.”

(Image: Manchester Evening News)

It adds: “It is known that these investors are evaluating locational options and are addressing the detailed business case for such an investment with a view to selecting a site and bringing forward detailed development proposals later this year”.

As well as an arena, a multiplex cinema, hotel development and food and drink options are all seen as ‘potentially viable’ options by investors and operators, the town hall report says.

(Image: PA)

The zone around Eastlands is a regeneration priority for the council, which sees the area’s existing world-class sports facilities as a catalyst for further regeneration, linking up the city centre with east Manchester.

An arena would fit regeneration plans and could add jobs to the local area, the report adds. But it must be considered in relation to other sites ‘depending upon availability and suitability within the city centre,’ the report adds.

Any proposal that would place much more stress on the transport network would also have to be accompanied by a residential car parking scheme, it says, adding that surrounding communities must be taken into account if plans are brought forward.

Last year, council leader Sir Richard Leese said an arena was one of ‘countless’ possibilities for the area.