Hundreds of jobs could be created when new companies move into areas at Portsmouth Naval Base previously used for shipbuilding, the MoD has said.

It has shortlisted BAE, Burgess Marine, and Magma Structures as possible occupants.

Defence Secretary Michael Fallon called it a "significant step forward in getting the ship halls back to work".

The MoD said it wanted to support growth in the region and use the site "in the most effective way".

Negotiations will take place in the coming weeks to decide which company or companies will occupy the halls.

Portsmouth ship halls proposals

BAE Systems wants to base its Maritime Services at the facility, working on the Royal Navy's hunt-class mine countermeasures vessels, utilising 200 jobs

Burgess Marine wants to construct and fit luxury yachts, creating 200 jobs

Magma Structures wants to move its manufacturing plant there, securing its workforce of 180 "with the potential for future employment"

Mr Fallon said: "It offers the opportunity to open up the shipyard to more firms providing high skilled jobs.

"This is an exciting time of regeneration for Portsmouth Naval Base, with the MoD investing £98m over the past year.

"This will help ensure that Portsmouth retains its maritime engineering expertise and traditions."

In November 2013 BAE Systems announced it was ending shipbuilding in Portsmouth.

It said 175 of its staff were re-employed in its maritime services division, 585 voluntarily left to take employment elsewhere, whilst 160 were given compulsory redundancies.

(BBC)