The Arts Council of Wales, said it was working with other "potential funders and interested parties" Photo by Roy Edwards of the Jools Holland Band in 2008
A rescue plan is being drawn up to save the Brecon Jazz Festival after it was announced the company behind it is being wound up.
The town's mayor Martin Weale said he was in talks with "two well-known organisations" about staging a jazz event next summer in Brecon.
Mr Weale said any new organisers would be entirely separate from the company which put on last summer's spectacle.
The festival company has ceased trading after suffering a "substantial loss".
Mr Weale, a Powys county councillor, also claimed some of the event's current sponsors had expressed an interest in supporting a new festival.
People in Brecon react to the news that the jazz festival has had to call in the receivers
However, he was reluctant to reveal any more about the ongoing talks.
Mr Weale added: "I am in talks with two different but well-known organisations. Both are established in this arena.
"The organisers of an event next summer would be entirely new and separate from the company which is sadly being wound up at the moment.
"I am very hopeful that something will happen in 2009. In fact, I'd be disappointed if we didn't have a jazz festival in Brecon next year.
"The scope of it is something I'm not in a position to comment about at the moment."
The company behind Brecon jazz is being wound up, two months after telling creditors it was suspending payments.
Its board blamed bad weather for poor ticket sales and said it "suffered a substantial financial loss".
A creditors' meeting has been called for 9 January, 2009, and the festival company has ceased trading.
Poor sales
A statement from the company said although pre-event ticket sales were good, bad weather resulted in poor sales over the festival weekend.
A local hotel also pulled out as a venue which meant extra marquee and site costs.
Organisers estimate that the weekend is worth �4m to the local economy.
One of the festival's major sponsors, the Arts Council of Wales, said it was working with other "potential funders and interested parties" to see what practical steps could be taken to ensure its future.
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