The city of Brighton and Hove woke up to wonderful news last Friday as John Prescott gave the go-ahead to Albion's new stadium at Falmer.

It is not just the football club that will benefit. The new stadium at Falmer will help push Brighton and Hove into the Premier League of prosperity, say business leaders.

John Prescott's decision to allow the 22,000-seat arena has been greeted with euphoria by Brighton and Hove Albion fans.

But it will also bring massive benefits to the economy in the way of new jobs, investment, regeneration, education, improved infrastructure and raising the profile of the city.

The stadium stands alongside the King Alfred development in Hove and daring plans for Brighton Marina as projects which will define the city for the next century.

It will create at least 1,000 badly-needed jobs and bring undoubted social and economic improvements to the deprived communities of Moulsecoomb and Whitehawk.

One of the main reasons Mr Prescott said yes to the stadium was because he believed it would be a major catalyst for regeneration.

Mark Froud, chief executive of Sussex Enterprise, said: "The business community has long been telling us that a new stadium at Falmer will bring a positive economic boost to the area.

"It will create jobs, attract inward investment from businesses and become a major draw, not just for football fans, but for thousands of visitors eager to use the facilities.

"Obviously a project of this size and nature will need adequate infrastructure to support it and we urge the authorities to make sure this is in place.

"This announcement is yet another example of the way Brighton and Hove is moving forward as a developing and prosperous new city, providing endless opportunities for communities across the whole of the county.

"These are exciting times for Sussex."

Tony Mernagh, chairman of the Brighton and Hove Business Forum, added: "The stadium will contribute to our growing reputation as an event destination.

"The stadium could also contribute to the city's plans to capitalise on the Olympic Games in 2012 and will be the largest openair arena on the South Coast."

Simon Fanshawe, chairman of the Brighton and Hove Economic Partnership, said: "Like the Brighton Centre development in the Sixties and the King Alfred development, the stadium will be another great example of Brighton and Hove taking that one step ahead and is a major component in our vision of a 21st century city."

Lord Bassam of Brighton said: "The city and the club have waited a long time for this and it has all been worth it.

"It will be a massive boost to the economy and to Brighton and Hove as a visitor destination."

Brighton Pavilion MP David Lepper said: "This will be a boost to the club, city and entire region and could act as a catalyst for regeneration in east Brighton."