The mart's survival depends on the council getting matched-funding

The mart is facing relocation from the town centre to make way for new supermarkets in its place.

But a meeting of Ceredigion councillors has decided to seek matched-funding to move the mart to relocate to a bigger site at Lovesgrove, two miles outside Aberystwyth.

Aled Ellis, who operates the market for the council, had raised fears that it would close unless the council came up with more than the �150,000 it was willing to pay for the new development.

We felt we had to make a commitment to the most important industry in this area Dai Lloyd Evans

Mr Ellis says �400,000 is needed to fund the move.

But a behind-closed doors meeting of the council's cabinet on Tuesday decided to seek matched-funding from public bodies for the move.

Council leader Dai Lloyd Evans said the cabinet had decided to back Mr Ellis' scheme.

"We felt we had to make a commitment to the most important industry in this area," he added.

Mr Ellis' plans for a new mart will be discussed by councillors next month.

"I am delighted that the council has agreed to try to get matched-funding to make the move viable," said Mr Ellis.

"I hope they will be successful because otherwise there will be no mart at Aberystwyth."

Up to 200 farmers use the livestock market

If the move goes ahead Mr Ellis would continue as market operator with the local authority sub-letting the new site to him.

Up to 200 farmers from Ceredigion, Montgomeryshire and Meironnydd attend the weekly fat stock and seasonal sheep sales.

Earlier this year the council rejected a separate �1.3m plan for a new mart at Lovesgrove.

Developers Liberty Mercian still want to develop the existing mart site for new stores for supermarket groups Kwik Save and Summerfield as well an extra 100 car parking spaces,

Under the plan the existing Somerfield store would then be occupied by a major non-food retailer with the old store being used as a household goods store.

The development would also include moving council offices to the area.

A council spokesman said that Liberty Mercian are due to submit its plans for the mart site development next month.