Perth and Kinross councillors have supported a collaboration with neighbouring local authorities which could unlock a slice of a £400 million windfall.
Under the city deal, the council will form a partnership with Dundee, Angus and Fife to apply for cash from the UK and Scottish governments.
The money will be used to create jobs and help unemployed people get back into work, as well as to upgrade the area’s transport network and “unlock strategic development sites” for future expansion.
Glasgow and the Clyde Valley already have a similar agreement in place and through it have unlocked an investment of £1.13 billion.
The city deal for Perth was approved at a meeting of the full council.
Leader Ian Miller welcomed the plan.
He said: “The benefits of having a city deal in place are numerous but, if we look at the models already in place for other cities, it might allow us to have a greater ability to promote new infrastructure throughout the area by looking at a regional public transport network, the ability to unlock key strategic development areas, support our key industries and growth sectors.
“All of that should lead to an increase in jobs, sustain employment and, above all, tackle the issues surrounding a low-wage economy.”
He added: “I have always been of the view that cities drive the wider economy in any area which can have a real impact.”
“Informal discussions” have already taken place with other local authorities, he revealed.
“Much work remains to be done but I believe that this is a huge opportunity for us,” he said.
Chief executive Bernadette Malone will be asked to liaise with leaders in Angus, Dundee City and Fife.
In a report to councillors, executive director (environment) Jim Valentine said: “Perth can only benefit from a city deal by collaborating with other authorities. The key issue is to get an agreement on the extent of the partnership and governance arrangements.”
He added: “Whilst informal discussions have taken place, formal engagement is necessary at political, as well as officer, level.”