By Daniel Hewitt - Political Correspondent
ITV Tyne Tees has learned that a devolution deal for the North East is back on, after three councils decided to go it alone.Earlier this month a devolution proposal with seven local authorities collapsed, and the government declared the deal was 'off the table'.
But I understand that Newcastle, North Tyneside and Northumberland - the three areas that voted for a devolution deal - have got together and negotiations are now underway with the government over forming their own separate deal.
We understand Gateshead, Sunderland, Durham and South Tyneside - who voted to postpone the previous proposal - are not be involved.
I'm told Communities and Local Government Minister Sajid Javid is keen on securing the deal with the three authorities, and talks are 'progressing well'.
Newcastle, North Tyneside and Northumberland have been told the money set aside for the failed deal is still available. A name for the three areas has yet to be agreed.
A deal is unlikely to be signed until 2017 but the government is keen to make some kind of announcement in the Autumn Statement on November 23rd, likely to be a transport initiative between the three local authorities, possible relating to HS2.
It's our understanding that an elected mayor will not form a part of the new deal.