Staff at an arts venue under threat because of a £1.4 million funding crisis have been given a ray of hope.

The Old Market Trust, which runs The Old Market in Upper Market Street, Hove, owes the money from the restoration of the Grade II listed building.

The future of the trust and the venue's seven paid staff still hangs in the balance despite crisis talks with The Arts Council of England, the South East Arts Board and Brighton and Hove City Council last night.

The talks were organised to discuss a lump sum to reduce the debt and the possibility of an annual revenue support of £100,000.

As a result, The Arts Council agreed to consider helping The Old Market cope with its debt as "a matter of urgency".

South East Arts and the city council will consider the trust's request for the £100,000 to fund the programme.

The three organisations will decide in principle by December 14 and the trustees will meet on December 17 to discuss the way forward.

Robert Minton, chairman of The Old Market Trust, said: "We are confident there is a desire to see this project succeed and we await the outcome of these deliberations hopefully."

The Old Market project was launched in 1995.

The trust was set up to manage the building's restoration, with almost £6 million of public money and private donations ploughed into the scheme, which was opened by its patron, the Duke of Kent, in May, 1999.

Building work began in 1997 after the project was granted £3.9 million of National Lottery money through the Arts Council of England.

At the time, it was the largest ever arts award made in the South-East from the lottery.

The project ran into financial trouble almost straight away and had to be bailed out by the city council in July last year.

A secret report had suggested it was in financial difficulties and its main creditor, builders Bovis, would seek a winding up order if it was not paid.

The council loaned the organisation £275,000 on the condition someone with financial expertise was put on the board of trustees.

Mr Minton said before last night's meeting: "We have been as open as possible with staff about the future of the building.

"It is a very difficult time for us all but we are looking forward positively.

"We shall do everything to keep the building running.

"This is a successful venue and has promoted some excellent events but it costs a lot of money to run."