Y Dolydd is one of the last unspoilt examples of a Victorian workhouse

The charitable trust behind Y Dolydd at Llanfyllin, near Welshpool, will hold talks about a possible merger with a group called The Workhouse.

There are plans for an arts community centre, office space and tourist beds in the Grade II-listed building, which used to accommodate 250 poor people.

In 2004, it was featured in the BBC's Restoration series.

Plans to convert it into 25 apartments also remain an option.

Following the Restoration series, the Architectural Heritage Fund (AHF) agreed to loan Y Dolydd Building Preservation Trust �350,000 to buy the workhouse.

'Attractive solution'

Since then, various ideas about its future have been mooted.

The latest proposal by The Workhouse comes months before the trust has to repay the AHF's loan.

Mark Burnett, chair of The Workhouse group, said the merger would be discussed on 28 November.

"If it's accepted then we would want some of our members to stand as nominees for the board of trustees, but that will have to go through the Charity Commission," said Mr Burnett.

"We want to transform the building into a community enterprise centre for the arts with a music venue, a bunk house for tourists, a campsite, restaurant and office space.

"We think this would cost about �1.5m, half the figure quoted to transform it into apartments."

John Hainsworth, of Y Dolydd trust, said trustees were keeping their options open.

"We find The Workhouse plan the most attractive solution, but we don't think the commercial development is necessarily a bad idea," he said.