The NEC (National Exhibition Centre) Arena in Birmingham is to have a new look and name after receiving a £28m funding package from electronics company LG.

The venue, which will be renamed the LG Arena, will receive new seating, hospitality, bars, restaurants and improved backstage areas.

As part of the sponsorship deal, LG will help support repayment of £25m to Birmingham City Council. An application for a grant of the remaining £3m is currently being considered by Advantage West Midlands.

Phil Mead, managing director of the NEC Group Arenas, said: "The redevelopment means we will be able to offer our visitors an outstanding entertainment experience from start to finish at a world-class venue.

"Our capacity will be increased by around 2,000 for the benefit of promoters and major selling acts but also the flexible seating and draping systems will provide more intimate theater-style configurations."

Mark Pearce, corporate director of economic regeneration, at Advantage West Midlands, added: "Conference and event tourism is a competitive strength for the West Midlands region.

"The redevelopment programme will deliver an arena that raises the profile of Birmingham in target markets, underpins event-related economic impact, protects and grows the region's major events programme, and provides an enhanced entertainment experience for visitors."

The venue will be officially renamed in autumn and work will begin in September.