Thousands of people attended last year's event

Instead, there will be a series of smaller gigs with acts playing at more than 40 indoor venues across the city over the bank holiday weekend.

The event was cancelled last Thursday amid health and safety fears.

Council Leader Warren Bradley said he was "disappointed" there were no outside stages and that safety issues could not be resolved.

He also said he was hugely impressed by the way all the different agencies had worked together to ensure the event could go ahead.

The cancellation of the event, which attracts about 100,000 people each year over the bank holiday weekend, was announced last week.

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.

'Good scousers'

The festival over the bank holiday weekend will lead into Liverpool's 800th birthday celebrations on 28 August.

Professor Drummond Bone, chairman of the Liverpool Culture Company, said: "By moving the acts indoors, people will still be able to enjoy the fantastic entertainment that the Mathew Street Festival is famous for in safety."

The directors of the festival said they were shocked and acutely disappointed that the festival would not feature outdoor stages.

But they added that it was not a time for recriminations and said: "This is the time for all good scousers to come to the aid of the party to ensure that this great City has an 800th birthday party to be proud of."