UP TO 700 jobs could be created at a new food production business being lined up for Hull.
Talks between the as yet unnamed company and Hull City Council are at advanced stage.
Full details have yet to be released and the development is expected to require planning permission before it gets off the ground.
However city council leader Councillor Steve Brady confirmed the development represented a potential investment of up to £300m.
The announcement came shortly before the ruling Labour group used its majority to approve budget plans to axe up to 600 jobs at the authority. That decision was met with protests outside the Guildhall.
Cllr Brady said a final agreement on the new investment could be sealed "within a matter of weeks".
If confirmed it would represent a major boost for the city's economy ahead of long-awaited confirmation from German engineering giant Siemens over its proposed offshore wind turbine assembly plant at the city's Alexandra Dock.
The latest company involved is believed to be British-based but with international interests.
The Mail understands the business currently earmarked for a council-owned site to the east of the city will combine the production of renewable energy and food.
Sources say energy derived from burning biomass at the site will be used to grow market garden food, such as cucumbers, on a large scale.
Councillor Brady gave initial details of the negotiations in the morning session of yesterday's full council meeting.
He said: "We are in the final stages of talks about bringing a major renewables and food company to the east of the city, which will bring 700 new jobs.
"These are the type of opportunities we have been pitching.
"We are continually highlighting the potential of the workforce here and saying to businesses: 'Hull people will not let you down'.
"By planting these seeds, we can, and will, bring about positive changes for the city."
Cllr Brady also confirmed that Lord Haskins, chairman of the Humber Local Enterprise Partnership, has been closely involved in the negotiations.
The news emerged just before councillors were due to debate alternative budget proposals.
After a near five-hour session, Labour's budget was approved by 38 votes to 18.
However, three Labour councillors – Gary Wareing, Gill Kennett and Dean Kirk – voted against their own party in protest at some of the cuts.
As well as 600 posts facing the axe, the agreed budget includes proposals to shut three council customer service centres and Anlaby Park Library, in west Hull.
It also paves the way for the first increase in council tax bills in Hull after a three-year freeze.
Deputy Labour leader Councillor Daren Hale said: "I moved the budget with a heavy heart. It is a very sad day for local government."
