The aim is to make the North East a leading centre for stem cell research
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Work is starting on a £3.8 million upgrade of fertility services and stem cell research facilities.
The investment at the Centre for Life, in Newcastle, will include laboratories which are purpose-designed for stem cell research.
It is part of a project aimed at making the north-east of England one of the top 10 centres for stem cell research in the world by 2010.
In 2004, the government announced Newcastle would become a science city.
The project is being led by the Institute of Stem Cell Biology and Regenerative Medicine, which is a partnership of regional development agency One NorthEast, Newcastle and Durham Universities, Newcastle upon Tyne Hospitals NHS Trust and the Centre for Life.
The new facilities will allow a £9.8m science city grant from One NorthEast to be brought into use at the earliest possible date.
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