Plymouth Argyle owner James Brent is set to buy the leasehold of the Pavilions too.

The city council will be asked to approve the deal next week at cabinet, which would see the Akkeron group working in partnership with the Theatre Royal.

The authority has been looking for a buyer for some time as it currently spends one and a  half million pounds a year on the arena and says this is unsustainable.

The Akkeron group argues it would create more than 500 jobs by expanding the current capacity of the arena and building some housing and retail developments nearby.

A new ice rink would be built on the car park next to Plymouth Argyle's stadium.

All staff would either stay as Theatre Royal employees or transfer to the new subsidiary company FDL.

If approved next week, the new ownership arrangements could take effect from October this year.