Bradford Festival and the crowd-pulling Mela could be split and made part of a district-wide arts plan in a bid to make them even bigger and better.
The recommendations are to be put to Bradford Council's Executive next Tuesday in a report which points out the vital role festivals and events have in economic and community regeneration.
The report suggests separating the Mela and Festival to develop them, with the Council overseeing them for the next five years.
It also states that the Mela should be used to attract local, regional and national visitors to a major celebratory event inspired by the city's diverse cultural heritage, while Bradford Festival's primary purpose would be to engage and inspire the creativity of the people of the city.
Following on from the district's Cultural Strategy, an arts plan has been developed and a district events framework drawn up which covers all cultural events in the Bradford district and wider areas of Airedale and Wharfedale.
Councillor Simon Cooke, executive member for regeneration and culture, said: "We want to build a vibrant and sustainable creative community that supports a range of arts businesses.
"The key aims of the arts plan is to develop the necessary infrastructure, raise the profile of the arts, grow the creative sector and engage the next generation of artists and audiences.
"The events framework articulates our ambition to get involved in a range of well marketed events, from local galas to international festivals, to encourage visitors to the district and to inspire people and communities to get involved in making them a success.
"We also want to tap into national and international initiatives such as the Olympics, National Architecture Week, International Women's Day and the Festival of Muslim Culture, by organising local celebratory events."
Last year's festival brought a £2.3 million boost to the city's economy and attracted 174,000 visitors. The event was organised by the Council for the second year running after its contract with the Bradford International Festival Company ended.
The relationship between the Council and the company hit problems over spending and there was criticism from people who said the festival was not as good as in previous years.
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