Plans have been submitted for a park and performance space on the bank of the river at Gateshead Quays, next to the Glasshouse International Centre for Music.
The development proposal includes the creation of Performance Square, Arrival Plaza and Linear Park. Gateshead Council has announced the scheme will also feature improved pedestrian access.
The project has been allocated £24m in funding from the North East Mayoral Strategic Authority.
First phase of arena redevelopment
Reform UK councillor Steve Campion and North East mayor Kim McGuinness said this represents the first phase in the redevelopment, which will prepare the site for a proposed new arena.
Construction on the arena on land between the Glasshouse and Baltic Centre for Contemporary Art was originally due to begin in autumn 2023.
Councillor Campion said: "We will see beautiful and high quality public spaces in part of our quayside which has been neglected for too long."
Mayor McGuinness said she wanted the area to "become a world-class destination", but added it was "also important that this iconic waterfront works for local people now because for too long it's been overlooked".
"That's why we're investing in a new performance square and park that people can enjoy every day," McGuinness said.
Previous council tensions
Earlier this year, Reform council leader Nick Allan described the arena as a "vanity project". McGuinness later said she and Allan had held a "constructive" talk over the development.
The plans are subject to planning permission.
