A PROPOSED Newport 'Knowledge Quarter' will help modernise the city's economy, according to community leaders.

This week The Argus revealed that the University of South Wales and Coleg Gwent have teamed up to develop plans for a new £60 million facility on the banks of the River Usk.

The scheme would see the university’s existing Usk Way campus developed to make additional room for the college.

Alan Edwards, chairman of the Newport Now city centre Business Improvement District, said he was "excited" at the move.

"The fact that this plan is being put together due to the success of Friars Walk since it opened in November shows how excited we all should be about the future of Newport," he added.

"The proposed Knowledge Quarter will help attract more businesses to the city, who will then take on youngsters who have studied there.

"We all know that there is a move away from heavy industry to more hi-tech employment and this development could be the boost we need to take greater strides in that direction."

However, the businessman added: "I welcome the plan but hope that the partnership with Coleg Gwent does not dilute the university itself.

"We need to encourage post-18 full-time students to live and work in our city centre."

The proposal, which has yet to be finalised, could involve the relocation of Coleg Gwent’s Nash Road campus, with the two institutions sharing space in the new building or buildings.

Newport West MP Paul Flynn told The Argus he was delighted by the investment prospect, and joked that Usk Way should be renamed 'Boulevard Newport Nouveau'.

He said: "This splendid boulevard is now home to the iconic existing university building and the colourful Friars Walk, and any further development like this one can only make the area look even better.

"This news is a moment for hope in the city. Prosperity and success are as contagious as dereliction, and the heart of Newport is now improving in so many ways."

Newport East's MP Jessica Morden and AM John Griffiths were briefed by Coleg Gwent about the plans on Friday morning.

Mrs Morden said: "The Knowledge Quarter would be a very welcome development not only for the city centre but for future students in Newport."