Manchester City Council (MCC) and regeneration company New East Manchester have unveiled plans to build a new £20m BMX cycling arena at the Sportscity site in the east of the city.

The proposed 4,500-seat arena will be situated next to the existing Manchester Velodrome, and is set to serve as a training base for BMX riders in the lead up to the London 2012 Olympic Games. Plans for the new arena, which will be built on the east car park at the Velodrome, include a 100m x 70m (328ft x 230ft) track, 2,000 permanent seats and 2,500 temporary seats.

The facility will house two Sport England-standard, four-court sports halls, will also be linked to the existing Velodrome complex by a joint reception area, restaurants, shops and offices. Construction companies have now been invited to express an interest in developing the site, while the local community will be given a chance to comment on proposals in public consultation before a planning application is submitted.

Mike Amesbury, MCC's executive member for arts and leisure, said: "Our ambition for the BMX development next to the Velodrome is to make it both a centre of excellence for elite sports people and a resource for the local community. "We want to continue the tradition of providing top-class facilities that bring young athletes through the grassroots to the champions' podium. Facilities at Sportcity that helped British athletes win so many medals at the Beijing Olympics and Paralympics are also very well used by local people."

The new facility will complement an existing outdoor BMX track at the city's Platt Fields Park, while Amesbury also confirmed that the council has further plans for outdoor facilities near to the Velodrome in Phillips Park and the Medlock Valley. Eddie Smith, chief executive of New East Manchester, added: "This is just the first stage of a long process, and marks the start of a new phase in the development of Sportcity that will enhance the existing sports facilities here in east Manchester."