The venue sits on a proposed site for a Crossrail station

The government on Tuesday backed the �10bn rail project linking west and east London via the West End.

Astoria owners Mean Fiddler told BBC News Online: "This is not going to affect the Astoria. We have been in talks with Crossrail."

However, a Crossrail spokesman said plans had not been finalised.

He said there were "various options" being discussed.

The music venue could face demolition due to a new rail station being built in the Tottenham Court Road area of the capital.

The spokesman said there was "ongoing talks with a number of people".

The Astoria station would be linked to the current underground station on the corners of Tottenham Court Road, Oxford St and Charing Cross Rd.

U2 concert

The Astoria, which hosts concerts and club nights, is one of the most popular mid-sized music venues in the capital.

It has played host to bands including U2, The Rolling Stones, Blur, Manic Street Preachers and Nirvana, as well as hosting the G-A-Y club night.

The Crossrail system is "unlikely" to be ready before 2012

The Crossrail project has been suggested to help ease transport problems in the capital, and to improve the chances of London winning the bid for the 2012 summer Olympics.

But a Crossrail spokesman said he did not think the scheme would be ready in time for the 2012 games.

The Astoria began life as a pickle factory, but has been used as a variety theatre before becoming a music venue.

Its central location has made the 2,000-capacity venue one of the city's most popular, despite its shabby interior.

The venue also has a smaller space, currently known as The Mean Fiddler, next door.