Plans to convert a tram shed in Cardiff into a modern art venue have been revealed by the team leading the city's bid to become the European capital of culture in 2008.

The Grade Two listed building in the Grangetown area of the city is currently being used by the council as a repair centre for their fleet of vehicles.

Visual arts is a key part of Cardiff's bid for the capital of culture Gordon Dalton, Cardiff 2008

Six architects have been shortlisted to redesign the site which could become the main venue for large scale international exhibitions.

The cost of the project is estimated at �3.5m and the aim of the scheme is to rival the Tate Modern in London and the Baltic in Gateshead.

Despite several art galleries operating in Cardiff, there is no suitable venue for large international exhibitions since the closure of the Centre for the Visual Arts in 2000.

Gordon Dalton, the visual arts coordinator for Cardiff 2008 said: "Visual arts is a key part of Cardiff's bid for the capital of culture.

"It has been highlighted that there is a need for a facility and the support for artists in Cardiff and there is a gap for exhibition space.

We are looking at their past experiences in visual arts and industrial buildings Gordon Dalton, Cardiff 2008

"The venue is close to the city centre and we have a lot of support from local artists and gallery owners about this project.

"We have done nearly 12-months consultation and research on this scheme and the wheels are in motion for it to go ahead," he said.

The annual cost of running the new gallery at the building which was built in 1902 is estimated at �1m.

The council which currently occupies the building is looking for alternative premises for its fleet of vehicles.

"We shortlisted the architects to six from 21 and they will be having a site visit and interview next week," said Mr Dalton.

"We are looking at their past experiences in visual arts and industrial buildings and how the local area will be affected as well as the environmental impact that the designs will have."

The successful architect is expected to be announced next week.