Hitslink, in Highfields, has offered advice on benefits, employment and family issues for 20 years.

It is concerned it will suffer as the city council tries to settle a budget shortfall of more than �10m.

Officers at the city council admit that many members of the voluntary sector are nervous about how the deficit is going to be made up.

Warning letter

The council has sent out letters which say it is considering plans to shutdown community advice centres and replace them with a central telephone advice service.

Other general enquiries would be dealt with by libraries, community centres and GP surgeries.

Managers at Hitslink says their work offers specialist advice, often dealing with people whose first language is not English.

They say it is work which could not be done over a telephone line.

Hitslink has warned its clients the service may have to close.