Goldman Sachs, the investment bank, is considering opening a large office in Manchester or Leeds in a sign that the UK regions could benefit from big banks cutting costs as world financial turmoil intensifies. However, the positive news is balanced by expectations that levels of business will fall in the UK’s satellite financial centres, mirroring the slump in the City.

Midas, an inward investment agency, said on Tuesday Manchester was on a Goldman Sachs’ shortlist for opening a 100,000 sq ft office in the Spinningfields development, which has already attracted Bank of New York Mellon, Deloitte, PwC, Royal Bank of Scotland, Barclays and BDO Stoy Hayward.