Two of the gardens trustees have resigned following legal advice

On a day when two trustees of the �43m project resigned it has emerged that Carmarthenshire Council and the Welsh assembly have been in discussion with several private companies.

Discussions are at an early stage and the identity of the companies involved is being kept secret but they are well known names in the leisure and tourism industry.

The garden at Llanarthne in Carmarthenshire is only being kept open through emergency cash handouts from the council and assembly government - and some from the Millennium Commission.

Earlier this month the garden was on the brink of closing when it emerged it had reached the end of its �2m overdraft.

We remain fully committed to the gardens and will do everything we can to help secure its long-term future Councillor Wyn Evans

Carmarthenshire Council's Director for Strategic Projects Robert Sully told BBC News Online: "The council and other organisations with an interest in the garden are in discussion with interested parties.

"It's very early in the process but we remain very hopeful for the future of the garden. These names would be well known in Wales."

On Tuesday Carmarthenshire councillors Wyn Evans and Ryan Jones both resigned as trustees of the garden.

Councillor Evans said he had been advised there was a potential conflict of interests following a funding offer made by his authority.

Both members had been advised that they could be personally liable for the debts of the garden.

"Following advice from the county council's legal office they were of the opinion that we should no longer act as trustees of the botanic garden," said Cllr Evans.

"We remain fully committed to the gardens and will do everything we can to help secure its long-term future."

Visitor

He declined to speculate on the position of the garden's remaining trustees.

It has also emerged that the council has not yet handed over the �150,000 it promised Middleton in short-tem funding.

It is still waiting for "certain assurances" from the trustees.

Mr Sully said the council wanted the garden - which has consistently failed to attract the number of tourists originally envisaged - to be more "visitor-focussed".

"The council sees it very much as a destination driven by visitors. We will continue to work with our partners to secure its long-term future."

Efforts to save the Millennium-Commission fund project are running against the clock.

It only has enough funding to stay open till Christmas, and most of the 100 full and part-time staff have already been made redundant.