AMBITIOUS plans to put Southampton on the national cultural map with the creation of a multi-million-pound arts centre in the heart of the city have taken a further step forward.

Members of the City Council's Cabinet heard vocal support from arts groups in the city for the scheme which aims to turn the former Tyrrell and Green site in Above Bar into a centre for culture in Southampton.

City bosses hope to attract up to £5m funding from the Arts Council of England to help pay for the project which is due to be completed in 2006 if it is given the final green light by planners.

The city council's Cabinet member for leisure, culture and tourism Councillor Peter Wakeford told arts groups from across the city: "Liverpool today is a city of culture. Why not Southampton tomorrow? Why should we not be in a position to be able to bid to be a city of culture and this would be a step on that road?"

Two huge glass towers containing 200 high quality properties overlooking Guildhall Square and East Park will be created on the site if the plans are given final approval.

They will form part of a new "cultural quarter" in the city along with a centre for the arts costing more than £8m.

Below the towers, space will be made to house arts groups from across the city such as a performing arts centre, the Art Asia project and facilities for the city's media project, City Eye.

There will also be space for an upgraded replacement Gantry Arts Centre as well as new facilities for the John Hansard Gallery which will be part funded by an Arts Council grant and money from the city council.

Funding for the new centre will come from the £5m grant and money the council raises from the sale of the site to developers - estimated to be about £2.8m. Cash to pay for the scheme will also come from a £750,000 grant from the Arts Lottery to Art Asia as well as £500,000 which will have to be found from other grants over the next three years.

Arvind Pandit treasurer of Art Asia said: "We are really excited. It brings an Asian organisation from the back streets in a deprived inner city area into the mainstream. It will be a matter of honour to the Asian community. The value you get back you can't measure in pounds."

Paul Lewis head of marketing and operations at Southampton's Mayflower theatre said the theatre saw the scheme as "an unrepeatable opportunity" to revitalise the area.

He said: "It would draw people into the area and benefit the economy and boost the existing facilities of the area. I don't think a city that has serious ambitions for national status can afford to be without it."

Leader of Southampton City Council Councillor Adrian Vinson said he was "delighted" with the strength of support from the arts community in Southampton.

He said: "As well as being a flagship project for the south it is very much to do with the regeneration of the Northern Above Bar area. It is about jobs and prosperity as well as about culture and prestige."

Cabinet is due to discuss endorsing council funding for the project - estimated at £2.8m at its next meeting which is scheduled to take place later this month. Full council will also be asked to approve the plans.