AC Milan and city rivals Inter have announced plans to build a new 60,000-seater stadium.

A joint statement released on Wednesday confirmed that a ‘technical and economic feasibility study’ had been filed with city officials, marking the start of a regeneration project that could cost more than €1.2billion.

The ground will be built in an area just metres from the existing San Siro site and it is hoped that the complex could create 3,500 jobs.

The current stadium, opened in 1926, has a capacity of 80,000, making it the largest in Italy. It has been renovated on several occasions and as recently as 2015.

Over the years it has played host to a number of sporting events, including matches at the 1934 and 1990 World Cups and four European Cup finals, along with concerts from performers such as Bob Marley, Michael Jackson and Beyonce.

It is set to host the opening ceremony of the 2026 Winter Olympic Games.

“The choice of AC Milan and FC Internazionale is based on a careful and in-depth analysis, carried out over the last few months,” read the statement.

“Both AC Milan and FC Internazionale are firmly convinced that this is the right path to follow and are thrilled and excited by the project which will give Milan a new landmark of world-class excellence, contributing to the progress already made by the city of Milan over the last few years.”