Scottish Government pledges £200m for Tay investment
UK counterparts challenged to match spending for Dundee, Perth, Angus and north Fife.
The Scottish Government has said it will invest £200m in the Tay Cities Region Deal, calling on UK ministers to match the amount.
The deal will cover investment in Dundee, Perth, Angus and the north of Fife.
It aims to create thousands of jobs over the next 10-15 years by focusing on skills, tourism, transport and innovation.
City Region Deals are agreements between the Scottish and UK governments and councils designed to bring about "long-term strategic approaches to improving regional economies".
Initiatives are already in place for Glasgow, Aberdeen, Inverness and Highland, Stirling and Clackmannanshire and Edinburgh and south-east Scotland.
Previous deals have seen Scottish and UK ministers match each other's funding.
However, the UK Government is yet to confirm how much it will commit to the Tay cities project.
An announcement could be made in the Chancellor Philip Hammond's Budget on Monday.
Infrastructure secretary Michael Matheson said: "Scotland's cities and their regions are the engines of our economy.
"That is why I can confirm that the Scottish Government has agreed to invest £200m in the Tay Cities Region, to deliver significant long-term economic benefits.
'A Tay Cities Region Deal of this scale has the power to build on the area's significant strengths and expertise.'Infrastructure secretary, Michael Matheson
"A Tay Cities Region Deal of this scale has the power to build on the area's significant strengths and expertise."
He added: "I expect City Region Deals to be funded on a 50:50 basis and I call on the UK Government to match our commitment and make this a £400m deal.
"The Tay Cities Region includes Dundee, Perth, Angus and the north of Fife.
"This investment will help the region continue to thrive and grow, fulfilling our ambitions for the region to be one of the most economically and culturally vibrant areas in the country and delivering benefits to the whole of Scotland."
Tim Allan, president of Scottish Chambers of Commerce, said: "We welcome the announcement from the Scottish Government to commit £200m to the important Tay Cities Deal.
"It is now over to the Chancellor to match the ambition and momentum of the Scottish Government, and to match the figure so we can achieve maximum impact for the region.
"It is critical the Chancellor rises to the challenge, with pace, and put business and enterprise at the heart of his Budget."