Ministers have backed a report which concludes that acres of land are underused and overlooked.

The study, released by the Countryside Agency and Groundwork, argued that hinterland making up of up to 20 per cent of the total land around towns and cities should be allocated towards children's play areas, health improvement and sustainable job provision.

A consultation on the issue has also been launched.

"It is a common misconception that there is a clear distinction between the countryside, green fields, hedgerows, hills and woodlands and towns and cities," said Pam Warhurst, Countryside Agency deputy chairman.

"In reality the two often blur around the edges in a distinctive zone of horse pastures, public utilities such as electrical substations and struggling agriculture.

"This consultation gives us an opportunity to consider what the rural/urban fringe could mean to the people who live, work and visit there, and how to achieve the best social, economic and environmental benefits from this often overlooked resource."

The report was welcomed by rural affairs minister Alun Michael.

"The countryside around our towns is an important environment for today's generation and a rich asset for future generations provided we get the planning right," he said.

"We need to get rid of the outdated idea of a rural/urban divide because we need each other.

"We need to understand the interdependencies and promote the concept of sustainable development as the key for both urban and rural areas and where better to start than with the urban/rural fringes.

"That fits well with the rural white paper's vision for a countryside more diversified than in the past at which the links between town and country are strong and healthy.

"A vision for the rural urban fringe takes this a step further by providing a template for combating local environmental, social and economic priorities to create more attractive surroundings and recreational opportunities and generate more income, from a wide range of sources, for land managers and others who depend upon the fringe for a living."