Designs are still being completed for the former market in Circus Street and so the development is unlikely to start until 2009, the city council said.

Councillors are considering leasing the site for art events in the meantime.

The council said events including large-scale exhibitions, design shows, and performance art had been proposed.

Such large spaces are unusual in the city Councillor Garry Peltzer Dunn

The redevelopment will eventually see the building turned into eco-homes, offices, a dance studio, restaurants, public spaces, and a new library for the University of Brighton.

Councillor Garry Peltzer Dunn said: "Such large spaces are unusual in the city so it could be very useful.

"It would be an excellent way to get this vacant building back into use."

And he added the move would not only reverse "the dereliction of the building" but would also tempt people into the eastern part of the city centre.