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The project involving the SECC and Scottish Hydro will create a venue able to seat over 12 thousand people for concerts and sporting events.
The Scottish Hydro Arena is gonna be built in front of the Armadillo and the existing conference centre.
It's expected to contribute an annual £131 million to the Scottish economy after it opens in 2013.
It will host around 140 music, entertainment and sporting events a year and expects to attract a million visitors, making it one of the busiest venues in the world.
Scottish Hydro who are sponsoring the project say they'll be putting an annual £1.5 million into the building over the next 10 years.
SECC chief executive John Sharkey said the arena will offer an "unrivalled programme of world-class events" complete with "iconic global artists and acts".
He said: "To be partnering with a successful and established FTSE top 30 UK brand with Scottish roots is part of our commitment to working with the best in the business.
Scottish Hydro shares our vision for the new arena that will position Glasgow and Scotland at the forefront of the global events and entertainment industry."