Chrysalis Radio will be bidding for the Northeast licence, RadioToday.co.uk can confirm.
The group are keen to expand The Arrow, the online, satellite, digital and cable radio station after recent research revealed a gap in the Northeast radio market for an adult rock station.
GCap Media recently announced they will be applying for the licence using the XFM brand.
Other bidders expected for the licence include GMG Radio wanting to expand the smooth fm brand, CanWest, Chrysalis and Chris Tarrent-backed Celador.
The closing date for applications is December 8th 2005. Keep an eye on RadioToday.co.uk got the very latest on the Northeast licence race.