Thousands of people attended last year's event

The annual music festival was cancelled over health and safety fears just three weeks before it was meant to kick off the city's 800th birthday party.

Council leader Warren Bradley said the street alcohol ban and moving the funfair could overcome some concerns.

The alternative plans are awaiting Merseyside Police's approval.

The cancellation of the event, which attracts around 100,000 people and was due to be held over the August Bank Holiday weekend, was announced on Thursday while Mr Bradley was on holiday.

Liverpool City Council said the loss of space at the Pier Head and the amount of ongoing construction work meant there was a "significant" risk to the public.

Despite detailed planning for the event, a health and safety review launched just two weeks ago found the lack of space - combined with large crowds in an unlicensed environment - would pose too much of a risk.

Council leader Warren Bradley has suggested alternative plans

After learning of the cancellation, Mr Bradley said he had been working with councillors, local businesses and council officers to come up with a plan to ensure the festival went ahead.

He has proposed the alcohol street licence be withdrawn and also said the children's funfair should be relocated to a park.

He said health and safety remained "paramount" while ensuring the entire city and its visitors could enjoy a full bank holiday celebration with the Mathew Street Festival at its heart.

The council leader has already promised an investigation into events surrounding the cancellation.

Mr Bradley said he was only made aware of potential problems on Wednesday - the day after health and safety officials finished their inspection.