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.
More top news
Police are appealing for information after a 22-year-old woman was robbed by the roadside near Stokesley.
Newcastle Council leader Nick Forbes says the city could take children from the Calais Jungle migrant camp in the next couple of years.
The distraught family of a teenager killed in a car accident have backed a campaign to safeguard young drivers on north east roads.