The future of the historic Swan Hunter shipyard will be tied up with the development of much of the north bank of the Tyne, a summit meeting decided yesterday.

Yard owner Jaap Kroese and senior figures from Newcastle and North Tyneside councils and One NorthEast also agreed that it was vital to secure and maintain the facilities in the Wallsend yard to ensure the possibility of any future industrial use.

This will be one plank of a "scoping study" to look at uses for the north bank of the river from the North Shields Fish Quay all the way to Spiller's Wharf on the east end of Newcastle Quayside.

All the potential employment and other uses for riverside sites will be investigated, including industries such as oil and gas and subsea.

Six weeks ago, Mr Kroese saw the RFA ship Lyme Bay towed out of the Tyne to be completed by BAE Systems in Scotland - forcing the loss of 260 jobs.

Now this first meeting of the Swan Hunter working group has set out priorities for how the yard - and the wider area - should be developed.

A brief for the study will be written in the next seven days. It will then be carried out by an independent consultant, before a report is produced by the end of January 2007.

John Harrison, elected mayor of North Tyneside, said nothing had been ruled in or out of the study.

"We have a responsibility to the region and to our communities. This site is very important and has great potential," he said.

"The yard is still looking at market opportunities and it is our job to also focus on the medium and longer term future, not just for the yard, but the whole north side of the river."

Newcastle City Council leader Coun John Shipley said: "It is vitally important that we secure the future of the river as a major economic asset. It is vital that we work with speed on the scoping strategy."

Coun Shipley said he recognised the financial logic of building ships at Swan Hunter had not been stacking up, but he did not want to see the facility lost.

"I don't think it makes long term economic sense for a country the size of the UK to reduce its capacity to build ships to virtually zero," he said.

"As far as Swan Hunter is concerned, we wish to maintain a facility there as a priority."

Mr Kroese said: "It is wonderful that the two councils and the development agency are working together on the future of the yard and the river.

"So far as I am concerned I am still looking for work for the yard. I want to build ships but I am realistic. The important thing for me is that we look at all opportunities to create jobs on the site." One NorthEast marine sector manager Ray Thompson said: "One NorthEast will work with our public sector partners and Jaap Kroese on the scoping study which will identify future opportunities for the Swan Hunter site and the north side of the Tyne.

"The study will look at the international marine sector, its current state, and what opportunities that may present Swan Hunter."