HUNDREDS of new jobs could be created in Manchester after one of America's oldest banks revealed it is considering moving a large part of its operation out of London.

The Bank of New York currently employs several hundred "back office" processing staff in Canary Wharf in London.

But high property prices in the capital could mean a move North, where office rents are almost half as much.

The bank revealed its plans after a report in a specialist commercial property magazine claimed that it had asked four agents to pitch for the job of finding 150,000 square feet of office space in Manchester.

Speaking in the Financial Times, Sir Howard Bernstein, chief executive of Manchester City Council, said: "We have been working with the Bank of New York for some time, but we can't provide any further information at this stage."

A spokesman for the Bank of New York described the report as "speculative", but added: "We are a growing business, and we are always looking at our property needs."

However, property sources confirmed that the bank is currently choosing agents to find a large amount of office space in the city.

David Partridge, deputy chief executive of property developer Argent, said that he had been aware for some time that the bank was considering moving part of its staff out of London.

He added that the top rents in Manchester are between £25 and £27 a square foot, compared with £35 to £40 in Canary Wharf and £40 in the City of London.

The Bank of New York started trading in 1784, and opened its first office in London in 1966. It employs more than 4,000 people in its total European operations. It had total assets of $97.5 billion as at June 30 of this year, according to the company's annual report in July.