The project includes three areas of West Yorkshire – the Aire Valley in Leeds, the Bradford-Shipley canal corridor and a site in North Kirklees and South Dewsbury – as well as a further eco-settlement in York .

* Click here to sign up to free news and sport email alerts from your YEP.

According to the Leeds City Region Partnership, up to 28,000 new eco-homes will be designed and built to meet "the highest standards of sustainability", including low and zero carbon technologies and good public transport.

* Click here to follow the YEP on Twitter.

Another 10,000 homes will be upgraded with environmental improvements, while the project could create up to 44,000 jobs.

Coun Andrew Waller, who chairs the Leeds city region housing panel and is leader of the City of York council, said: "This is a very positive step forward that the Government is now providing funding to develop the urban eco-settlements in the city region.

"It has followed months of negotiation between councils and central government to create locally a different way of approaching the eco-town model.

"It is important to build sustainability in from the start, and to maximise skills and job creation opportunities through stimulating eco-construction and eco industries."

The Leeds city region partnership's urban eco-settlement proposals were first put forward as an alternative to the Government's eco towns programme in 2008.

In the Aire Valley, development has already started.

* Click here to watch latest YEP news and sport video reports.

* Click here for latest YEP news and sport picture slideshows.