Professional management and the employment of key staff could help save the crisis-torn Priestley Centre, according to arts and leisure chiefs.

They say the option of the theatre being managed by a "commercially orientated organisation" would play an important part in the multi-million pound regeneration of Little Germany where it is based.

Top Council officers with Business Link and Yorkshire Arts have met the board of the Priestley Centre for Arts Ltd to discuss the future of the problem-torn theatre.

They will report to a meeting of the regeneration and culture scrutiny committee at the centre on Tuesday that it would take a minimum of two years and would require considerable funds to turn the centre round.

Hundreds of people are expected to attend the meeting which comes as the company prepares to go into voluntary liquidation. It ceased trading last Monday. A special meeting of members on Tuesday, February 4, will be recommended by the board to approve the company's liquidation.

But members and supporters of the theatre are hoping for an 11th hour reprieve.

Chairman of the board Glen Boldy says the liquidator would sell assets - including the theatre in Chapel Street - to pay debts totalling £50,000. The company would remain solvent as the assets are worth more than the debts. Finance raised would go to another similar charitable organisation.

The company has been meeting council officials for about two years to try to ensure continuity of the centre. It resulted in grants totalling £14,000 from the authority and £10,000 was raised through a Telegraph & Argus campaign. But Council officials will tell Tuesday's meeting that the cash injection was only able to offer a temporary reprieve and the Chapel Street theatre could no longer survive with its dropping audiences.

Committee chairman Councillor Andy Mudd said: "I think the problem in the past has been the inability to make the link between culture and regeneration in the case of the Priestley Centre."

In a report by officers to be considered at the meeting, a suggestion will be made that because the building is listed it might be eligible for heritage, arts and regeneration funding. The option of the premises being shared could also be examined.

The officers say if feasible options were developed, the centre could fulfil key objectives in the district's cultural strategy, particularly with training. But other providers in the district would have to be consulted.

The officers have concluded that closure would probably have little effect on the economy of Little Germany. Their report says: "In the longer term, a thriving theatrical presence, which is managed by a commercially-orientated organisation, which brings people and expenditure into the area, is an important part of the mix which will support the ongoing development of Little Germany."