A home office minister has been appointed to oversee efforts to improve race relations in Oldham.

Angela Eagle will visit the troubled town which has been hit by riots. She is expected to lead a progress review which will take place within four months.

Following a meeting with MPs, police and local councillors at the home office a range of measures were agreed including an agreement not to distribute funding on particular areas of the town to avoid accusations of unfairness.

The action programme will concentrate on community renewal and promoting racial harmony. It will also identify the economic and social factors that have lead to friction. The council will develop the role of local forums which will involve the police and community groups.

Home secretary David Blunkett issued a statement saying he was pleased with the progress that had been made but stressed it was up to local people to find a solution.

"I was particularly keen to hear what sort of action local leaders propose to take to heal community relations. The local authority outlined their proposals to deliver an action programme, which would review all the issues, in consultation with local communities, within four months.

"It is vital that local people are able to develop solutions to the problems they face; I made clear that the government, across departments, is prepared to provide support and independent advice in this process," Blunkett said.