The theatre only recently reopened after a �2.1m revamp

Exeter's Northcott Theatre is threatened with complete loss of a �547,000 grant, about a third of its total income, from April 2009.

It had only reopened in December after an 11-month, �2.1m revamp when it was told the grant may be stopped.

Actors including Sir Ian McKellen have given their support. A final decision is expected later in January.

Star support

Theatre bosses said there was a real possibility that the theatre could be forced to close with the loss of 58 jobs because it could not afford to stay open without the grant.

Artistic Director Ben Crocker said support had been coming in from across the theatre world.

He said: "We've been getting messages of support from all over the acting profession.

"We've had an e-mail from Sir Ian McKellen expressing solidarity.

"In it he says: 'So having helped refurbish the Northcott recently the Arts Council seems perverse in now proposing to withdraw the grant for its work'."

The Arts Council put in about �100,000 towards the recent refurbishment.

Most of the other �2m came from local public bodies who are now angry because the Arts Council had previously written to local authorities saying how keen it was to back the Northcott.

Sir Ian McKellen has e-mailed his support to the theatre

Exeter City Council Chief Executive Philip Bostock said: "One letter said: 'I trust this will be able to reassure your members that we remain an active supporter of the Northcott and an enthusiastic investor in its future'.

"If the Arts Council insists on continuing to cut that grant then we have no option but to consider legal action, because we feel that all this public money was invested on the basis of clear promises from the Arts Council."

The Arts Council said that the big decisions about the Northcott's refurbishment had to be made well before they were ready to decide about ongoing funding.

It said it contributed, believing that the investment would provide an improved theatre.

The works included essential works to comply with health and safety laws and the Disability Discrimination Act.

The public protest is to be held in Exeter's Bedford Square from noon on Saturday.