The town hall has shared details of its new arrangement with the Blues

Manchester City will pay an extra £320,000 a year to the council for its lease at the Etihad Campus as part of an updated agreement.

Town hall papers published in August revealed a variation to the lease in light of the changes taking place to the stadium and surrounding land, which has been transformed into a major visitor destination since the ground first opened for the 2002 Commonwealth Games.

New figures released by the council have revealed it will pocket extra each year from its leases with the football club, with a further £33,000 for the stadium lease, £252,000 for City Square, and £35,680 from land in the new Medlock Square hotel and entertainment zone.

The extra cash will add to the total amount paid to the council by City, which stood at £6.3m last year, made up of £4.4m in rent, £1.1m from naming rights, and £790,000 from income from Champions League games.

Lease payments for the stadium and City Square are set to increase in future through inflation-linked increases, while the land lease at Medlock Square includes an annual rent uplift of three per cent and future reviews.

Manchester council leader Garry Bridges said: “It shouldn't be understated what a brilliant income this is for the city and a stream of funding that most councils in this country dream of.

“This is more than £6m every year that is pumped into sport and leisure investment and activities across the city that otherwise wouldn't exist - and will increase every year into the future. The impact of this for our communities is incredible.”

He added: “We have a responsibility to make sure we deliver for our residents. This was a great deal for the city and continues to be a great deal for the people of Manchester.”

Manchester council paid £33m towards the £110m initial construction cost of the Etihad Stadium, which was previously known as the City of Manchester Stadium.

City’s lease at the ground started in August 2003 for a period of 250 years.

Since the lease agreement was signed, rent paid to Manchester council has grown through negotiated agreements with the club.

A Manchester council spokesperson said: “As freeholders of the Etihad Campus, the council has always sought independent third-party advice that makes sure we can negotiate the best deal in terms of rental income for the land - and on top of this, the council has also negotiated further uplift through naming rights and income linked to any potential European games.

“Following the club's substantial investment in the campus, which would generate a further income for them, the council has since concluded negotiations for variations to the lease that means the council can benefit from further income each year - along with an annual increase of 3pc.

“This represents a substantial and recurring return on the council's original investment in the stadium for the 2002 Commonwealth Games, which has created an annual return of more than £6m. This income will grow each following year and reflects the significant long-term value secured for the city.

"Income through this agreement is jointly managed with Sport England and is ring-fenced for reinvestment into sport and leisure activities across Manchester."

Manchester City was approached for comment.