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County Durham Partnership Board has offered to act as the bid's sponsor and has put forward 500,000 to help set up the project, with the council's cabinet asked to put forward 71,000 to underwrite activity before further sums of cash can be considered.
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Culture title bid begins
It could also see the winning city host events such as the Turner Prize and Brit Awards, with the whole region likely to benefit from events.
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The idea has been proposed by Culture Secretary Andy Burnham and hopes to give one place the chance to showcase its creative skills, Omega Watches For Mens
It is hoped the project could create hundreds of jobs in tourism and bring millions of pounds in investment.
Mr Thompson added: "It is a county that has a rich spiritual and industrial heritage, boasting a stunning built environment and natural landscapes and yet is at the bottom of the league table of English counties when it comes to its population visiting libraries, museums and attending events."
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talent and enthusiasm on the national stage in the run up to the 2012 Olympics.
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He also called Durham "one of the most visually appealing and beautifully set heritage sites in the country" but points out that many journalists from national papers would fail to locate it on a map.
In Durham, support has been shown from the cathedral, university, police force, health services, prison service and groups including Durham City Vision and County Durham Tourism Partnership.
Ian Thompson, corporate director for regeneration and economic development, says in a report to go before the council tomorrow that a "cultural renaissance programme" has such potential to improve the quality of life that a festival should be held in 2011 whatever the Government's decides.
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Chester le Street's Riverside Cricket Ground, Gala Theatre, existing celebrations of books and music and the regatta.
Councillors have been asked to back both the city bid and a festival of culture in 2011.
His report highlights the many assets of the area, such as its World Heritage Site, riverbanks, Botanic Gardens, museums, Omega Seamaster Titane Quartz 120m Price
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Its foundations will be put in place during the next six weeks, with efforts to be stepped up once the Government announces if it is to press ahead with the British Capital of Culture scheme.
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