Motorists in the UK could see driverless cars take to the roads as early as next year after business secretary Vince Cable announced new measures giving the developments a green light.

UK cities can now bid for a share of a £10 million competition to host a driverless cars trial.

The government is calling on cities to join together with businesses to put forward proposals to become a test location.

Up to 3 cities will be selected to host the trials and each project is expected to last between 18 and 36 months, starting in January 2015.

Ministers have launched a review to look at current road regulations to establish how the UK can remain at the forefront of car technology and ensure there is an appropriate regime for testing the driverless cars in the UK.

"Britain is brilliantly placed to lead the world in driverless technology" - Greg Clark

Speaking at vehicle engineering consultancy, test and research facility, MIRA, where he tested a driverless car with the Science Minister and Tunbridge Wells MP, Greg Clark, business secretary Vince Cable said: "The excellence of our scientists and engineers has established the UK as a pioneer in the development of driverless vehicles through pilot projects.

"Today’s announcement will see driverless cars take to our streets in less than 6 months, putting us at the forefront of this transformational technology and opening up new opportunities for our economy and society."

The driverless cars competition is being funded by the Department for Business, Innovation and Skills and the Department for Transport, in partnership with the UK’s innovation agency, the Technology Strategy Board.

Mr Clark said: "Britain is brilliantly placed to lead the world in driverless technology.

"It combines our strengths in cars, satellites, big data and urban design; with huge potential benefits for future jobs and for the consumer."

The deadline for applications for the driverless cars competition is noon on 1 October 2014.