Driverless cars will be gracing Greenwich next year, bringing with them new international manufacturers and industries.

Greenwich has been chosen as one of four places in the UK to run formal trials into how driverless cars could be integrated into everyday life.

The zero emission driverless car research in Greenwich, called the GATEway scheme, is being funded by a government competition, which challenged local authorities and businesses to come up with research projects to help introduce driverless cars.

Greenwich Council leader Councillor Denise Hyland said: "This is a fantastic coup for the Royal Borough of Greenwich, and demonstrates its growing reputation as one of the UK's leading locations for smart city innovation.”

Led by the Transport Research Laboratory consultancy the £8 million GATEway scheme will carry out tests of automated passenger vehicle shuttles as well as automated parking for adapted cars in the borough with initial testing taking place on the Greenwich peninsula.

Public feedback will be used in parallel with a driving simulator, DigiCar, to investigate driver behaviour with the driverless vehicles using a photorealistic 3D model of the Greenwich peninsula.

Issues such as risk, liability and insurance will be specifically addressed in the tests while simulated pedestrian interaction with automated vehicles will be developed as well as adaptation to traffic lights to enable safe and effective automated vehicle operation.

Dr Nick Reed, technical lead of the GATEway project, said: "We have a perfect location in which to demonstrate the automated transport systems and our vision is to bring international recognition to Greenwich, London and the UK through this project.

Coun Hyland added: "The businesses we are attracting here will help create job opportunities for local residents and drive forward the borough's economic growth."

Research into driverless cars will also be taking place in Coventry, Milton Keynes and Bristol.

Tests will begin in January and are expected to last for three years.