Manchester City FC have signed a deal intended to transform more than 80ha around the City of Manchester Stadium into a sports and leisure complex.

The club aims to increase the capacity of its 48,000-seater ground, create a new "fan zone" on the approach to the stadium and construct new training and medical facilities, in partnership with urban regeneration company New East Manchester and Manchester City Council.

The rest of the scheme has yet to be finalised, but Simon Bate, chair of New East Manchester, claimed it would be "pivotal" for the regeneration of east Manchester, one of the most deprived parts of the city. "It will give us the chance to restore economic dynamism to east Manchester, enabling businesses, local residents and football supporters alike to benefit from future investment," he said.

Garry Cook, chief executive of Manchester City, which recently completely completed a 14-month study of major sports facilities around the world, said: "The longer term considerations for the area reflect the long-term commitment of our owners to the club and the community it serves."