Betty moves from LA to New York

The show stars America Ferrera at Betty Suarez

US TV drama Ugly Betty is to move its production from Los Angeles to New York - where the story is set, TV bosses have announced.

The show is returning to the city where the pilot was originally filmed because of a 35% tax credit offered by New York City and state officials.

More than 200 jobs are expected to be created in Manhattan and Queens, where the show will be filmed.

The fashion world satire has been a major ratings hit in the US.

The tax credit on filming in New York, announced earlier this year, has created an escalation of rivalry for film shoots across North America.

In response to the move, California governor Arnold Schwarzenegger said that California must increase tax incentives to prevent further moves.

"I've been trying for four years, since I've gotten to Sacramento, to convince our lawmakers here that it is extremely important to give tax incentives to Hollywood," he said.

Ugly Betty joins other shows such as Law & Order and Gossip Girl which are also filmed in New York.