The deal, announced this morning, will make Trinity the dominant media player in the North-West of England and ends the century-old link between The Guardian and the regional press from which it sprang.

The sale includes both GMG Regional Media's subsidiaries, MEN Media which publishes the Manchester Evening News and 21 weekly titles in the North-West, and Surrey and Berkshire Media, which publishes ten titles in the South-East including the Reading Post.

But Channel M, the troubled TV station for Greater Manchester, and the company's local newspapers in Woking are excluded from the sale.

Mark Dodson, chief executive of GMG Regional Media, is leaving the company, as is Ruth Spratt, chief executive of MEN Media.

David Sharrock, currently chief operating officer of GMG Regional Media, has been appointed as managing director of MEN Media in place of Ms Spratt. It is unclear whether Mr Dodson will be replaced.

Meanwhile S&B Media, which also includes the Surrey Advertiser, will be managed as part of Trinity's existing publishing business in the South of England, Trinity Mirror Southern.

The deal is already being seen by some analysts as a vote of confidence in the regional press at a time when the industry's long-term future has been called into question.

Trinity Mirror chief executive Sly Bailey said: "GMG Regional Media is a perfect strategic fit for our group.

"This acquisition, which includes the Manchester Evening News with its proud and rich journalistic heritage, together with the weekly titles and associated websites extends our reach across print and online and is a further step towards our strategic goal of creating a multi-media business of real scale."

Carolyn McCall, chief executive of Guardian Media Group, said: "The Manchester Evening News and its sister titles have made a huge contribution to the fortunes of the Group for the best part of a century.

"GMG would like to pay tribute to all the staff for their hard work and achievement in a sector dealing with structural change as well as economic downturn."

GMG's decision to sell its regional arm reflects the mandate placed on the company by its ultimate owners, the Scott Trust, to secure the future of The Guardian in perpetuity.

Ms McCall said: "We have a strong portfolio which has to be in the right shape to achieve that goal. The Group board and the Scott Trust have made the decision to sell in light of these strategic objectives.

"GMG Regional Media is a good business and a publisher of important newspapers. However, we believe Trinity Mirror, as one of the UK's biggest regional publishers, is best placed to develop this business in a market that is likely to consolidate further.

"We are therefore confident that this decision is in the best long-term interests of the regional business and its staff, as well as delivering real value for the group."

Today's deal, which is due to be completed on 28 March, is made up of £7.4m in cash and £37.4m in the value of a printing contract from which Trinity Mirror has agreed to release GMG.

It represents the first concrete example of the regional press industry consolidation which has been widely predicted ever since the start of the recession.

With Trinity Mirror already owning the two daily titles in Liverpool, it was always the likeliest purchaser should the MEN come onto the market and the deal will make the company the dominant media player across North-Wales, Liverpool, Manchester and Cheshire.

The exclusion of Channel M, the Woking News and Mail and the Woking Review from the deal is prompting speculation that GMG will either close them or seek another buyer. Trinity declined to purchase the two Woking titles as it already owns the Woking Informer.

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