A building housing one of the best collections of British modern art in the world has been shortlisted for the £100,000 Gulbenkian Prize for museums and galleries.

Pallant House Gallery in Chichester is one of four projects in the running for the UK's richest art award.

The others are Kelvingrove Art Gallery and Museum in Glasgow, Kew Palace in London and Weston Park Museum in Sheffield.

They were whittled down from a longlist of 10.

A winner will be announced on May 24 in a ceremony at the Royal Institute of British Architects, central London.

Pallant House Gallery houses works by Peter Blake, Lucian Freud, Barbara Hepworth and Walter Sickert.

The Grade I listed Queen Anne townhouse recently became the first gallery in the UK to install a geothermal heating and cooling system which has cut its carbon emissions by up to 50 per cent.

Chairman of the judges, Francine Stock, said: "Choosing a shortlist has been tough. We've travelled coast to coast from northernmost Scotland to the Sussex seaside, visiting 10 very different museums.

"Each has its own way of attracting the local community and new audiences to collections and exhibitions, and it is exciting to see the growth in visitor numbers.

"There are marked contrasts in size and style but all four shortlisted museums are outstanding."

Kew Palace was home to George III and his family in the early 1800s.

The four-storey red brick house stands in Kew Gardens in south-west London.

It was built in 1631 by Samuel Fortrey, a merchant of Dutch origin, and was first used by the Royal Family in 1728.

In 1781 it was purchased by George III as an annexe to the nearby White House to accommodate his expanding family.

At the turn of the century it became a more permanent home for the Royal Family. King George IV was born there and Queen Charlotte died there.

The palace recently underwent a major restoration and reopened to the public last year.

While some rooms have been recreated in Georgian splendour, others have remained untouched for 200 years.

Of the other nominees, Kelvingrove is a Victorian art gallery and museum housing what has been described as "one of the greatest civic collections in Europe".

There are 8,500 objects in collections ranging from fine arts to archaeology and the natural world.

Unusually, the collections are grouped according to themes and stories rather than style or chronology.

The Glasgow gallery recently underwent a £35 million restoration project.

Weston Park Museum houses treasures including Egyptian mummies and a traditional butcher's shop.

The museum opened in 1875 and a recent £19 million transformation has brought it up to date. It attracted 55,000 visitors in the first 15 days of opening.