Ocean-going cruise liners could soon return to Liverpool's Pier Head following the approval of £17million in grants.

£7.1million is to from the Merseyside Objective One programme and £9.9million the Northwest Regional Development Agency - for the construction of a new £19million cruise liner facility on the world famous waterfront.

A new 250-metre extension will be built onto the existing landing stage, allowing cruise ships of up to 350-metres in length to berth, as well as naval vessels and tall ships. The size of the new berth will mean that some of the world's most famous liners will be able to drop anchor in Liverpool - including the Queen Mary II, the Queen Elizabeth II and the Grand Princess.

While the facility will create 90 new jobs directly it is expected to boost tourism and is a major part of the Liverpool regeneration.

Chief Executive of the Mersey Partnership, Thomas O'Brien said: "Accommodating the world's biggest liners will bring in a massive influx of new visitors, helping the city-region's tourism industry to continue riding the crest of a wave."

"This news will enhance not only the international image of Liverpool, but also the image of the wider Mersey waterfront which takes in a diverse range of urban and rural locations along 135 kilometres of Merseyside's coastline."

More than 25 cruises are expected to be tying up in Liverpool each year by 2009 and a new reception hall will be built to help welcome them.

The international cruise market is growing steadily. More than 270,000 cruise liner passengers embarked from UK ports in 2003 and numbers are expected to increase by 10 per cent every year.

Deputy Prime Minister John Prescott welcomed the announcement, saying: "I started my career in Liverpool working as steward on big ocean-going liners and so am absolutely delighted that the world's largest ships will be able to dock in the city. There is no greater sight than these giants of the sea resting in one of our most historic waterfronts."

"It is vital to the Merseyside economy that Liverpool can capitalise on the waterfront - it is its greatest asset. The city was built on a great seafaring tradition and it is great news that we can look forward to maritime life being part of a bright future too."