Howells is the minister responsible for music

Under the new system, the right to stage acts featuring any number of performers would be covered by the same licence that allows the pub to serve alcohol.

Culture, Media and Sport minister Kim Howells told a music industry conference in Sheffield he was committed to the reform of "our archaic and at times, wholly stupid, licensing laws".

"I do not need persuasion that the 'two musicians rule' is outdated and pointless," he said.

But he warned: "Simply abolishing the two musicians rule is not enough.

"Abolition would remove the exemption and make it harder and more costly for pubs to put on singers and other musical performers. "

'Shake-up'

The issue would have to be addressed through primary legislation, he said.

"We intend to bring forward a bill modernising the licensing laws as soon as parliamentary time permits.

"Our approach is to simplify and integrate the licensing regimes."

The government hopes an alcohol and entertainment licensing bill will be part of the Queen's Speech before parliament re-opens, a spokeswoman for Mr Howells' department told BBC News Online.

Anglo-Brazilian band Sirius B play at Modal Music on Saturday

"This will be the biggest shake-up to the licensing laws since 1964," she said.

Mr Howells' announcement comes as Sheffield prepares to play host to more than 30 artists from four continents over the weekend in its annual Modal music festival.

The event is held at the city's National Centre for Popular Music and Showroom.

Scheduled speakers include the musician and radio DJ Tom Robinson, and BBC Radio 3 producer Philip Tagney.