Brighton & Hove has been invited to bid for decentralised powers and resources from Whitehall in order to boost local growth and jobs.
The area has been included in a second wave of the Government's City Deals programme, which was unveiled last week by Deputy Prime Minister Nick Clegg.
The first wave of deals covered England's eight largest cities - Birmingham, Bristol, Leeds, Liverpool, Manchester, Newcastle, Nottingham and Sheffield - and were finalised in July 2012.
The second wave includes the 14 next largest cities and surrounding areas, plus the six areas with the largest population growth between 2001 and 2010. Other areas invited to put forward proposals include Milton Keynes, Stoke & Staffordshire, the Tees Valley, Preston & Lancashire and Sunderland & the North East.
Clegg said, "I want Brighton & Hove to come up with ambitious and innovative proposals to help them make changes that will be felt by everyone across their region.
"In the best English tradition we have witnessed a quiet revolution across the nation's eight largest cities.
"From control over buses and trains and the freedom to plug skills gaps to powers to 'earn back' tax and set up local investment funds to spend on local projects, the deals are unlocking the huge potential of our cities so they can go for growth.
"Now it's time to free even more places from Whitehall control."
Councillor Jason Kitcat, the leader of Brighton & Hove City Council, said, "We are really excited about the potential for Brighton & Hove to benefit from a City Deal. We are committed to working with our city partners and neighbouring councils to make sure that Brighton & Hove continues to thrive and be seen as an innovative and vibrant place to live and work."
The city's proposal must be submitted to ministers in January 2013.
By Andy Jowett