Cardiff's Butetown area is to undergo a £7.6m regeneration after the Welsh Assembly Government confirmed funding support for the scheme.

Cardiff Council is working with a number of local agencies and community groups to deliver the project, which has been backed with European Union structural funds. Plans for the area - formerly at the heart of industrial Cardiff Bay - include a new community centre; a youth facility; a training centre and environmental improvements.

The funding package comprises £6.2m from the Welsh Assembly Government, which includes £2m from the European Union and £4.6m from the Targeted Match Fund. Cardiff Council is supplying the remaining funding for the scheme, which will also include grants for improvements to community premises and social enterprises.

Welsh deputy minister for housing and regeneration Jocelyn Davies said: "Improving the appearance of an area and enhancing access to community services will deliver a range of benefits. Cardiff Council leader Rodney Berman added: "This is a unique opportunity for the people of Butetown and paves the way for long-lasting and sustainable improvements."