The £300m Tay Cities Region Deal was signed today.
The project, which will receive funding from the UK and Scottish governments, is expected to draw in further investment of £400m.
The deal will see benefits in Dundee, Angus, Perth and Kinross and the north east of Fife – with hopes that 6,000 jobs will be created in the area.
A total of six city or region deals have already been signed in Scotland, with funding from both governments used to build projects aimed at boosting local economies.
Scottish Office minister Iain Stewart MP , said: “Today’s landmark signing will deliver transformative investment to the entire Tay region, including £150m from the UK Government.
“The deal will create thousands of jobs through innovative projects such as cutting-edge forensic science at the University of Dundee and a drone port at Montrose in Angus.
“Investments in Perth City Hall transformation and Innerpeffray Library, Scotland’s oldest lending library, will also enhance the region’s culture and tourism offering.
“This is the seventh full deal we have signed in Scotland and we now have deals in implementation or development for all of Scotland, representing investment from the UK Government of over £1.5bn.”
Scottish Transport Secretary Michael Matheson said: “I am delighted to sign the Tay Cities Region Deal and confirm our £150 million investment at a time of unprecedented need.
“The commitments we have made with our partners today will help deliver sustainable, inclusive growth in the region through funding for skills, connectivity and innovation, and make a crucial contribution to economic recovery and renewal in the years to come.
“In these uncertain times, these investments will deliver much needed jobs across the region. I’m pleased that the projects delivered through the Deal can now get underway and start delivering real benefits for local people and businesses.
Signatory Prof Nigel Seaton of Abertay University who is chair of the Regional Deal Higher and Education Forum said: “Tay Cities Deal is a tremendous partnership.
“We’ve got a partnership involving colleges, universities and business who are all working together to deliver economic growth and particularly inclusive economic growth, economic growth that affects everybody across the whole region.”