NEWPORT'S old Odeon cinema, one of Wales' most historic entertainment venues, could become a live music theatre in a £1 million project.

The plans for the 1930s art deco style Grade II listed building, in Clarence Place, have been submitted by the P2 group, owned by former Chepstow Racecourse director Richard Perry and his wife Rhiannon.

Mr Perry said the project could mean up to 40 new jobs and a possible £5 million injection of new money into the local economy.

He said the outside of the building would be given a facelift, while the inside would be changed completely.

The proposals include creating the first purpose-built live music theatre in the UK with a proposed capacity of 2,240 people, bars, a restaurant, and audio and video recording facilities.

Mr Perry said he thought the theatre would regenerate that part of the city. "This project will create a centre of music and live performance excellence in the heart of South Wales, enhancing Newport's reputation as the centre of popular Welsh music.

"The venue expects to attract artists to the area ranging from world-wide contemporary and classical musical names, as well as showcasing local talent.

"The project will be providing the local business community with a much-needed meeting and conference facility for everyday use.

"The other pleasing aspect of the scheme is that the building will be tastefully restored to its former glory and again become a facility for all ages and backgrounds to utilise and enjoy."

The man charged with bringing household names to Newport will be music promoter Jon Sheller, and his booking policy will be designed to appeal to all ages, from nine to 90. He said: "Newport can establish itself on the world-wide live entertainment stage by creating this purpose-built theatre for the enjoyment not only of the local population, but first- time visitors to the city as well."

Mr Perry said he hoped the theatre would be open and trading by the end of September, but the plans must first be approved by Newport council's planning committee, Welsh historic monuments society CADW, and Gwent Police.