Members of an action group are still hoping to take control of a troubled theatre.

Officials at Arun District Council say a partnership between the Windmill Action Group and Littlehampton Town Council may yet be the best way to secure the future of the town's loss-making Windmill Theatre.

Only two groups expressed an interest in running the complex when it was advertised last year and only one chose to make a presentation to Arun councillors earlier this month.

Now a report, which goes before Arun's ruling Cabinet on Monday, is advising councillors to ditch the proposals.

In his report, services director Colin Rogers says: "This initial submission does not appear to offer best value to the council or indeed any advantage over existing service provision.

"The costs for year one would be in excess of the current budget. Therefore it is suggested the production company be informed their expression of interest is not considered to be of sufficient benefit to the council to pursue as an option."

Concerned local residents set up the Windmill Action Group after Arun announced it was losing money and started a wide-ranging review into its future management last year.

Campaigners handed in a petition with more than 5,000 names to councillors to keep the venue as a cinema and theatre.

They also enlisted the support of stars including One Foot In The Grave actor Richard Wilson, astronomer Sir Patrick Moore and comic Ronnie Barker.

Although the action group has not formally submitted a proposal to run the complex it is still looking into the possibility of a trust involving all the groups who use it.

Action group chairman Jackie Mallinson said: "There is still a long way to go and a lot will depend on Monday's meeting but we may be in a position to take those discussions forward.

"We don't have another facility like the Windmill locally and it is important to keep a sense of community in the town."

As well as recommending further talks with town councillors and the action group, the report recommends Arun Council continues to manage the complex in the short term.

The Cabinet will meet to discuss the future of the Windmill centre at Eastergate Village Hall on Monday at 4.30pm.