A bid by Brighton and Hove to become European City of Culture is to cost £350,000.

But city councillors said entering the race could bring investment into the city whether or not it wins.

They are expected to confirm the city's entry at a policy meeting on Wednesday.

A report recommends spending £350,000 on the campaign, with half of it raised by grants and business sponsorship.

This would be invested in a programme of events, marketing and research to give Brighton and Hove the best chance of success.

The UK's next chance to provide the cultural capital is in 2008. London, Cardiff and Edinburgh cannot apply.

Winning would produce at least £1.5 million in extra funds for investment in culture by the end of the decade. It could also provide a boost from EU funding and an increase in tourism.

The bid includes financial support for at least 20 arts-based businesses and organisations.

An arts programme will involve 12 large events and 20 smaller ones next year.

There will also be 30 community groups with thousands of people involved and an international marketing campaign for the city.

The two-year bid will be based on the Place To Be campaign, which resulted in city status for Brighton and Hove.

Rivals will probably include Bradford, Belfast, Liverpool, Manchester, Milton Keynes, Oxford, Birmingham, Bristol and Bath.

Brighton and Hove hopes the Dome renovation, new central library, the restored West Pier, Falmer stadium and the Black Rock development will all have been finished by 2008.

There will also be continued seafront redevelopment and a new centre for street arts.

Ian Duncan, ruling Cabinet councillor for arts, recreation and tourism, said:

"The benefits could be huge whether or not we win.

"The bid alone will bring welcome investment in our cultural sector, which accounts for thousands of jobs.

"Glasgow's image was transformed by winning the title 11 years ago and that has created a lasting impression.

"Winning would underline our position in the premier league of UK cities."