SuperTed was created in 1982 - but may return in CGI format

Mike Young, who now runs the US-based Mike Young Productions (MYP), said he was awaiting news on a grant application in Wales.

He said the company was in talks to set up a studio in Treforest, but was also looking at a site in Ireland.

MYP is one of the America's biggest independent production studios.

The firm's successful shows include He Man and the Masters of the Universe, Clifford the Big Red Dog, Pet Alien and Butt-Ugly Martians.

Mike and Liz Young moved to the US 15 years ago

Mr Young, who is currently in south Wales for meetings on the proposed studio, said it could initially create 20 jobs for storyboard artists, character designers and digital artists, but this could rise to 50 in the next two years.

He hoped the European base could be set up by mid-October, to start work on a CGI show called Dive Olly Dive about "a submarine and his pal", which would be a co-production with an Australian firm.

Following the success of SuperTed, Mr Young and wife Liz set up Mike Young Productions after relocating his family from Pentyrch, near Cardiff, to Los Angeles 15 years ago.

"It was one of the most stupid, crazy decisions you could make," he said.

"Our opponents were Disney, Warner and Sony and we were a piddling little company."

However, he said the studio flourished after a change of legislation saw American TV studios allowed to buy networks, creating an environment that was more similar to the European market they had left.

Flying bear

The firm recently established a business arm, called Taffy Entertainment, which looks after rights management and worldwide distribution.

Olly is the star of one of their new creations

Mr Young added that one of the firm's new award-winning shows, called Jakers: The Adventures of Piggley Winks, would soon be coming over to the UK, but had a Welsh feel to it already.

Although the series was set in Ireland, he explained that the village had a classroom modelled on one at the Museum of Welsh Life in St Fagan's, a street based on Lampeter's main street and a barn from a south Wales farm.

Mr Young also said he hoped SuperTed might be taking to the skies once again in the near future.

He created the flying bear and his friend Spotty in 1982 while with his first company, called Siriol Productions.

"SuperTed was the first thing we made and to get it made we gave 90% of the rights away," he said.