China’s biggest bank is to invest in the £650m Manchester Airport City project, according to the Financial Times.

The paper said that the state-owned Industrial and Commercial Bank of China is to sign the deal when George Osborne visits Beijing with a view to rekindling Sino-British relations after months of diplomatic tension.

The 150-acre (60.7-hectare) development is centred on Manchester Airport's international links and will feature 2,500 hotel beds and 100,000 sq ft (9,290sq m) of retail and leisure.

Manchester Airports Group (MAG) is behind the scheme, which was announced after the UK government confirmed the area as a new Enterprise Zone in March 2011.

A two-stage masterplan will see two core Airport City zones developed, the first adjacent to the airport's railway station and including hotel, office and retail uses among others.

The second zone will be located next to the existing cargo centre and will focus on logistics and freight. The development is expected to be undertaken over a 12- to 15-year period.

A Central Park stretching more than 800m (2,625ft) will act as the centrepiece to the project and include pavilions and event space, while linking with existing local green space.

Mr Osborne will fly to Beijing on October 13, a day after Boris Johnson, the London mayor, heads to China on his own trade and investment mission.