We present a spatially-averaged two-fluid model (SA-TFM), which is derived from ensemble averaging the kinetic-theory based TFM equations. The residual correlation for the gas-solid drag, which appears due to averaging, is derived by employing a series expansion to the microscopic drag coefficient, while the Reynolds-stress-like contributions are closed similar to the Boussinesq-approximation. The subsequent averaging of the linearized drag force reveals that averaged interphase momentum exchange is a function of the turbulent kinetic energies of both, the gas and solid phase, and the variance of the solids volume fraction. Closure models for these quantities are derived from first principles. The results show that these new constitutive relations show fairly good agreement with the fine grid data obtained for a wide range of particle properties. Finally, the SA-TFM model is applied to the coarse grid simulation of a bubbling fluidized bed revealing excellent agreement with the reference fine grid solution. (C) 2017 American Institute of Chemical Engineers