Theatre goers were keen to have a platform in Wrexham

It is the second financial setback for the council regarding the theatre in a number of weeks.

Earlier this month the company due to build the 400-seat venue pulled out just weeks before the start of work.

Wrexham Council contacted the second tender but they had gone into administration.

Now Wrexham AM and staunch opponent of the scheme John Marek said the initiative should be "shelved".

It's a complete waste of money John Marek AM

"It's no advantage to Wrexham at all," he said.

"Constituents are very concerned about the revenue costs.

"It's a totally unrealistic business plan and they should now rethink, it's a complete waste of money," he added.

He now wants the council to save their money and form a partnership with Clwyd Theatr Cymru in Mold and the William Aston Hall at Newi - a higher education college in Wrexham.

"They could go for the title of National Theatre for Wales," Dr Marek said.

The project has been plagued by financial problems from the start, in July the Welsh Assembly Government offered the council a lifeline after it announced a one-off grant of up to �660,000.

The controversial project to be built at the Wrexham Library and Arts Centre had a funding shortfall of more than �800,000.

Previous concerns

Despite the setback, which could put building work back by several months, the authority's deputy leader Alun Jenkins said he believed Wrexham would still receive the facility.

"It is disheartening to face another delay, but this does not undermine the council's commitment to the theatre," he said.

"It's still a unique scheme which includes important educational opportunities."

There had been previous objections from many locals who feared the new centre would steal audiences from existing theatres in the area - the Stiwt in Rhos and the William Aston Hall.

But its supporters convinced the council it would work in partnership with the other theatres.

Wrexham Council have not agreed on a way forward yet but they will either have to look again at the scheme to see if adjustments can be made or it will go back to tender.

Executive board members will meet in two weeks to discuss the issue further.

The theatre and conference centre was due to be completed by 2005.