The museum will be in Belfast, on the site of the shipyard where the ship — which sank in 1912 after hitting an iceberg in the Atlantic Ocean, killing some 1500 passengers and crew — was built nearly 100 years ago.

The £100-million Titanic Signature Project is likely to be a big draw in the city, which is undergoing regeneration after being ravaged by several decades of sectarian violence.

The plan was agreed by the devolved government in Belfast 10 days after politicians reached a deal to resume power-sharing in the British province after a four-month deadlock in a row over policing and justice powers.

The government is led by ex foes First Minister Peter Robinson — whose Protestant Democratic Unionists want Northern Ireland to stay part of Britain — and his deputy Martin McGuinness of Catholic Sinn Fein, which wants a united Ireland.

Officials expect the five-storey Titanic museum — which will also cover Belfast's industrial, shipbuilding and maritime history — to attract 400 000 visitors a year.

Work is due to start next year and it is expected to be open in time for the centenary of the Titanic's sinking in 2012.

The funding came alongside investment for a £150-million public transport system which will link the east and west of the city, traditionally divided on sectarian grounds.

AFP