The Tees Dance Initiative (TDI) will use the cash to encourage dance in one of Middlesbrough's most deprived districts.

TDI fought off tough national competition to win the award under the Arts Council's action research project.

The film Billy Elliott showed how a boy from a mining village became a successful dancer.

The film Billy Elliott won several awards

A TDI spokesman said the grant was "crucial" to developing young people in Teesside.

A spokesman for Northern Arts, which backed the TDI grant application, said: "The project concentrates on the aspirations, achievements and employment opportunities of the people in Tees Valley.

"Of the chosen winners we were the only dance organisation representing the North East of England."

The Arts Council of England received 300 initial enquires from national dance organisations.

Fifty strong applications were later submitted, and from those, six organisations were selected to deliver the scheme.

Michelle Silby, one of the dancers who will be involved in the project, said: "We are absolutely delighted to receive the award.

'Socially excluded'

"This money is crucial to the development of young people in Tees Valley.

" We are hoping to extend the scheme in other socially excluded areas of the Tees Valley to provide opportunities for young people."

Mark Mulqueen of Northern Arts, said: "This is a unique and pioneering dance project built around professional dance artists, who are delivering high quality teaching and training to people in Tees Valley.

"This programme enables dancers to stay in the North East and could even produce the next Billy Elliott."