Local councils have agreed to work with Manchester United to ensure the area around Old Trafford benefits from plans to redevelop the ground.

The club set up a task force chaired by Lord Sebastian Coe to explore the feasibility of renovating the stadium or building a new one.

Manchester United, Trafford Council and the Greater Manchester Combined Authority have entered into a partnership to ensure the plans benefit the area around the stadium.

Lord Coe said the agreement would “help fully unlock the incredibly exciting potential” of the redevelopment.

About 5,000 new homes have been included for the Trafford Wharfside area in a masterplan by Trafford Council.

Proposals for better connections to Salford and Manchester city centre have also been put forward by the council.

The partnership with United will see a new advisory team set up to guide regeneration in the area, including assessing how any new stadium would fit in to these proposals.

It is separate from the stadium task force chaired by Lord Coe, which includes Greater Manchester Mayor Andy Burnham and former Red Devils skipper Gary Neville.

The group is expected to a make a final decision over whether to pursue a £2bn plan for a new 100,000-seat stadium by the end of 2024.

Lord Coe said the “once-in-a-generation project” would see the “development of a world-class stadium for the north of England”.

But it would also aim to bring “broad social and economic benefits to the local area and surrounding region”.