The service is to undergo a modernisation programme

The trust has been told to make savings of around �10m.

But interim chief executive Anton van Dellen told a board meeting on Tuesday that cutting staff to save money would create an unacceptable public risk.

Last week the Welsh Assembly voted for a public inquiry into the state of the Welsh Ambulance Service, which a former head described as being in "crisis".

In May 2006, the trusts's former interim chief executive Roger Thayne resigned, saying he was "ashamed" of the service. He claimed 500 people were dying unnecessarily each year through under-funding.

Staff have also complained recently about unacceptable workloads and level of cover during shifts, with some claiming there was an overtime ban in place to save money.

What will not be acceptable in any way is for lives to be put at risk or lives to be lost as a result of balancing the books Anton van Dellen

But in a special meeting of the trust's board in St Asaph on Tuesday, Mr Thayne's successor strongly denied hundreds were dying every year through lack of money.

He said the trust had a deficit of between �5-�6m, and needed to make cutbacks.

But, he insisted it would not be done through staff cuts which would put the public at risk.

He added: "What will not be acceptable in any way is for lives to be put at risk or lives to be lost as a result of balancing the books.

"I think the service has got some very significant challenges at the moment.

If there's a reduction in cover, the consequences are that people may die Keith Menzies, GMB

"I think we are very fortunate in the staff we have got and the commitment they have. I think it's a management responsibility to try and give them the tools they need to do their jobs."

Mr van Dellen said the trust faced a "very tough financial year", adding that he was in discussion with the Welsh Assembly Government about the problems it faced.

He said the trust was also looking to recruit an extra 100 staff to help ease some of the overtime problems.

Tuesday's board meeting, at the trust's headquarters in St Asaph, heard that a comprehensive modernisation programme was being planned - but that it could take years to come to fruition.

Mr van Dellen warned: "In some parts of Wales this is going to take up to five years for us to deliver."

Dr Anton van Dellen said the service was facing a tough year

Keith Menzies, branch secretary of the GMB general workers' union, said he was pleased the trust had vowed to put public safety before balancing the books.

He said: "If there's a reduction in cover, the consequences are that people may die."

But he added: "We need a massive cash injection of around �35m.