Mr Penny is managing director of the Watershed Media Centre

The announcement follows a packed public meeting on Thursday night to discuss the theatre's future.

It was called by Dick Penny, managing director of the Watershed Media Centre, who is still considering whether to take over as chairman of the trustees.

The Old Vic, which temporarily closed last summer for a refit, has been struggling with a cash crisis.

The original cost of the upgrade was put at �7m, but this has now risen to �9m.

The theatre was already �2m short of the initial figure and a fund-raising campaign was launched to make up the shortfall.

Passion for Bristol

Mr Penny said he was taken aback by the strength of feeling for saving the theatre.

"What was impressive was not the numbers of people who turned out, but the passion for Bristol," he said.

"It's not about one institution, it's about our city and it was quite extraordinary. I did go away rather shaky."

Nick Capaldi, from the Arts Council, added: "It was a magnificent occasion, a real piece of theatre in its own right.

We've said we want to see vibrant active exciting theatre in Bristol Nick Capaldi, Arts Council

"We've worked with Dick for many years, he has a good business head on his shoulders.

"We're there to be convinced, we've said we want to see vibrant active exciting theatre in Bristol. We'll be making decisions by the end of the month."

A host of actors, writers and directors have put their support behind the theatre.

Actress Jane Lapotaire, who trained at the Old Vic said: "I've been absolutely exhilarated by the strength of the feeling in the auditorium from the people of Bristol about this beautiful building and how it should be shared by every group that lives in the city and how we could get it up and running again.

"I think Dick Penny is the man for the job if only he can be persuaded to become the chair."