Bosses at Durham Tees Valley Airport are to open a consultation on a blueprint for the site's future.
The airport, which has twice failed to secure government funding for its expansion, has now bought land it says could be used for "engineering, storage and distribution operations".
Owner Peel Holdings has said the proposals would safeguard some of the airport's flights.
Thomson has announced it will provide a weekly service from Durham Tees Valley Airport to Ibiza in summer 2014Read the full story ›
Durham Tees Valley Airport is set to become a centre for the storage and dismantling of unused aeroplanes.
Sycamore Aviation has set up its base at the airport and has already begun work on taking apart a number of airliners.
It is hoped that today's announcement will secure a financial future for the airport - which in the last five years has seen a reduction in both tourist destinations and passenger numbers.
North East MP James Wharton has welcome the announcement that the Tees Valley City Deal bid is to progress through to the next round.
Mr Wharton was the first MP to call on the Tees Valley LEP to bid for the City Deal status and has previously lobbied ministers on behalf of the area.
“I have been a long term supporter of this important bid.
If successful it will transfer a whole host of powers from national government to a local level.
Control over transport and skills spending, to name but two key areas, will mean local businesses can properly plan for Teesside’s future economy.
This has real implications for our area’s long term development and will see more control over spending in a whole host of areas controlled locally.
This is real and tangible decentralisation and our area is at the forefront of the process.”
Cities Minister Greg Clark has confirmed that the Tees Valley's city deal bid will now go through to the next stage.
The next stage will work towards determining which powers can be transferred to a local level, in order to determine the detail before a final decision can be made.
Durham Tees Valley Airport will reapply for Government money for a development project to safeguard its future operations. It follows a failed bid for £5.9m from the Regional Growth Fund in 2012.
£350m is up for grabs in the next round of funding. The airport has earmarked the site for a proposed freight terminal development.
The Business Secretary Vince Cable has told Teesside MPs that his department is analysing a submission by the airport following its recent failure to win a grant under the government's Regional Growth Fund.
Mr Cable was responding to a question by the Stockton North MP Alex Cunningham who met ministers to discuss the airport's critical importance to the wider Teesside economy.
Radical plans for a major international airport in the North East - even larger than Manchester's - have been put forward.
A transport expert from Middlesbrough says that it is the only way that the region can compete in the future.
If the idea is approved the new airport would be built near Peterlee, replacing Newcastle and Durham Tees Valley Airports, but many say that the idea has a slim chance of becoming a reality.
The company behind proposals for a new international airport to be built in the region have released an image of what the airport might look like.
The plans are currently only an idea, but if given the go ahead the airport would supersede both Newcastle and Durham Tees Valley airports and be built near Peterlee.
Plans for a new major international airport to be built in the North East have been put forward by a transport expert from Middlesbrough.
The airport would be built north of Peterlee, replacing the region's existing airports, and it is expected that it would be bigger than Manchester Airport.
Transport architect Tim Narey believes that a new airport for the North East should be as big as it can possibly be.