Lancashire County Cricket Club (LCCC) has announced it is to stay at Old Trafford and will embark upon a £30m programme to update the 140-year-old venue.

The club had been considering a relocation to a new purpose-built stadium in Wigan or east Manchester, but will instead implement a major investment programme to bring the ground up-to-date.

LCCC has entered a partnership with Trafford Metropolitan Borough Council (TMBC), which will make surrounding land – including the existing Town Hall site – available for redevelopment.

The announcement comes just weeks after it was decided by the England and Wales Cricket Board (ECB) not to award an Ashes Test Match to Old Trafford in 2009, favouring Cardiff instead.

The memorandum of understanding between TMBC and LCCC now requires ratification by the full city council.

The plans may include a new hotel and conferencing facilities, and it is expected that the capacity of the ground will be increased, and that permanent floodlights will be installed.