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
'Disappointed but not downhearted.'
Kerrie Gosney brings you Saturday night's forecast
Hollywood star is mistaken for controversial referee with the same name.