Cardigan Castle dates back to the 12th Century

Art historian Peter Lord looked at locating the museum at the currently rundown 12th Century Cardigan Castle.

But he is now considering alternative locations in Wales although he refused to reveal his reasons.

Ceredigion Council, which owns the property, is set to start an 18-month feasibility study to examine possible uses for the building.

Project manager David Maynard, of Ceredigion Council, said he would have welcomed the castle's transformation into a museum, but said Mr Lord felt plans were progressing too slowly.

Mr Lord said he had received excellent co-operation from the council but had now decided to investigate other possible locations for the museum.

Without the museum we will struggle to find a good use for it (the castle) David Maynard

Mr Lord, who lives near Aberystwyth, refused to comment further.

It is understood an initial 200 paintings had been acquired for the project and that Mr Lord had been in discussion with the council for a year.

He had managed to raise some money towards the museum too from a elderly sponsor.

The council's Mr Maynard said: "It's not been an easy decision for him (Mr Lord).

"He is looking for another location because things are not progressing quickly enough.

"Without the museum we will struggle to find a good use for it (the castle)."

Cardigan county councillor Mair Morris said it was a "great loss" to Cardigan that Mr Lord had decided to look elsewhere.

Restore

The castle failed to make the final of the BBC's Restoration last year.

A few weeks later Ceredigion Council received more than �200,000 in grants to help restore the castle.

A report was commissioned as well to advise councillors on the best way to restore the castle.

The council has also been seeking a buyer for the 12th Century building.

Cardigan Castle, which is believed to have hosted the first eisteddfod in 1176, was bought by the county council in 2003 after falling into disrepair.