New City Region is backed.
The council's Executive has supported the submission being made to Government next month of the plans which include the setting up of Tees Valley Unlimited.
Dave Budd, executive councillor for regeneration, said: "This is one of the most significant developments for many years."
Cllr Budd said it was not a reinvention of Cleveland County Council or the Teesside County Borough Council.
He said the aim was to drive up the economic performance of the whole of the Tees valley.
Middlesbrough Mayor Ray Mallon said: "The five unitary authorities are coming together more. People do not see boundaries and this document is indicating where the Tees Valley as a City Region should go.
"We have to be more aggressive and competitive to attract inward investment.
"This is all about cohesion and bringing people together. Tees Valley Unlimited will be there to co-ordinate what is going on across the Tees Valley. We are trying to punch our weight," said the Mayor.
The City Region plans aim to build on the economic strengths of the area to boost its economic performance, which lags behind other regions of the country.