HUDDERSFIELD MP Barry Sheerman is fighting for hundreds of government jobs to be based in the town.
Chancellor Gordon Brown wants about 10% of civil service jobs in London and the south east - around 20,000 - to be relocated to the regions.
Now Government official Sir Michael Lyons is looking into the practicalities of the proposal in the Lyons Review. His findings will be published in March this year.
Mr Sheerman said: "I have been talking to Kirklees Council about how we could get our share in to Kirklees.
"Huddersfield could well accommodate one of the smaller quangos which employ between 200 and 500 people.
"Ofsted is up for grabs, but that is a much larger organisation and would probably better be suited to somewhere like Leeds or Sheffield.
"But the Adult Learning Inspectorate might be appropriate to come to Huddersfield."
Mr Sheerman said talks were well advanced over the proposed moves.
"It's a real opportunity for Huddersfield and for Yorkshire.
"One of my targets this year is to get higher levels of skill in to the area, to get more people graduating and living and working in Huddersfield and if there are good quality jobs here people are more likely to stay."
Tony Elson, chief executive of Kirklees Council, said: "We have been very keen to work with Barry Sheerman on this. And we would work very hard to provide support to anyone who did relocate to this area.
"Any additional jobs would also act as a spurt into regeneration as people would spend money in local shops, eat at local restaurants and generally contribute to the local economy."
Sir Michael Lyons said the potential benefits of relocation include:
* Cost savings to Departments through improved recruitment and retention and lower labour and accommodation costs.
* Better service delivery to customers and improved quality of life to employees due to lower house prices and commute times which are often half those of staff based in central London.
Chancellor Gordon Brown is reported saying: "I am convinced that further decentralisation of public sector activities can lead to improved service delivery as well as provide a good deal for the taxpayer."