Talks are being held to set up a new project using Millennium Commission cash initially intended for the failed Life Force project.

The venture aimed at "being a benefit to the people of Bradford" is being spearheaded by Bradford Cathedral.

The campaign has emerged following the collapse of the Forster Square-based faith centre, which won a £2.2 million package from the Commission.

It folded after only seven months, failing to attract the 770 predicted visitors a week.

The two trading companies set up to run the enterprise - St Peter's House Trading Ltd and St Peter's House Bradford Ltd - were officially wound-up last week.

A liquidator has been appointed and he has revealed that creditors are unlikely to get back money they are owed.

But the Millennium Commission has announced it is not seeking to claim back the grant and is in talks with Cathedral staff about another scheme to benefit the city.

Acting Dean Canon Derek Jackson said: "We are in negotiations with the Millennium Commission and other parties.

"It's too early to say what we are planning. I don't want anything to prejudice or delay the negotiations or put other people in a difficult position.

"What will emerge is something completely new - not related to the previous scheme - but it will be for the benefit of Bradford people."

He stressed that the Cathedral still owned the building but had not been responsible for the Life Force project, which had been in the hands of the two trading companies.

A Millennium Commission spokesman said: "The Commission does have a right to withdraw the grant an any point. We are not seeking to do that and we are trying to see a way forward."

Life Force was opened in July last year and was hailed as a successor to the Faith Zone in the Millennium Dome. It closed in February.

The attraction was also home to the Food Academy, a restaurant and training school, which closed down with Life Force.

The only remaining activity within the building is a training base for Bradford Council's 23,000 staff, which it leases from the Cathedral.