Towering Provincial House could be replaced by ground-floor cafes and bistros spilling on to Centenary Square, it was revealed today.

Developers are also interested in a prestige hotel on the top city-centre site.

The site opposite Grade One-listed City Hall is regarded by Council planners as the most important in the district. And the future of the eight- storey skyline block will now be decided by Abbey National as staff move out this month to a new multi-million office complex at Croft Street.

The bank has looked at the cost of refurbishing the massive building, or bulldozing it for redevelopment of the site.

The company is in discussion with Council officers, who have prepared a planning brief for the site.

But is understood demolition is now being seriously considered by the bank, as it looks to the future.

The chairman of the Council's regeneration committee, Coun Dave Green, said: "We would be looking for a quality building or buildings and design would be an issue.

"We would want something which would enhance Centenary Square and the City Hall vista.

"The design would be a great challenge to someone."

Abbey National said there was no firm decision on the future of the building.

The bank has developed its new North of England headquarters at Croft Street with the help of a £2.5 million grant from the Government regeneration body, English Partnerships.

The new office will eventually house 2,100 staff within the next three years.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.