The new venue is due to open in October 2005

The Academy Music Group (AMG) is spending up to �5m on the creation of its tenth live music venue.

The company is buying a former city centre bingo hall to create a 2,400 capacity, two-room venue.

Residents opposed the plans, but they have been promised minimum noise and nuisance and a public transport boost.

AMG plans to open the Newcastle site, which is on the city's busy Westgate Road, in October.

The company currently owns and operates venues in London, Birmingham, Bristol, Glasgow and Liverpool.

'Big venue'

Plans for the Newcastle venue include a main room with a capacity of up to 2,000 and a separate "Academy 2" space for an additional 400 people.

Group operations director Steve Forster, who hails from Newcastle, said: "Having grown up in Newcastle, I realise how important great venues are to a thriving local music scene.

"Since the demise of other venues such as The Mayfair and The Riverside, Newcastle has sadly been lacking in quality venues.

"The consequence of this has been that many artists at the larger end of the market have by-passed the city and at the lower end, emerging local talent has not had the platform of a venue to hone their performing skills."

Spokesman Daryl Robinson added: "It is natural for people to be worried about a big music venue that will run late into the night.

"Transport is an issue in Newcastle and we will be campaigning to get better late night transport in the city centre, which I think all would agree isn't very good at the moment."