Council bosses are determined to save a troubled theatre and will be staging meetings with backers to formulate an action plan.
Officials at Arun District Council say a partnership between the council, the Windmill Action Group and Littlehampton Town Council could secure the future of the town's loss-making Windmill Theatre.
Cabinet members unanimously agreed yesterday for discussions to be held between the three groups as soon as possible.
Council leader Norman Dingemans said: "We will consider the way ahead and put all our cards on the table."
Councillors were told there would be some "difficult issues" to work through.
Services director Colin Rogers said that the cash-strapped venue needed between £290,000 and £350,000 and faced a bill of another £40,000 to £50,000 for new seating.
But councillors were adamant the theatre should be saved.
Cabinet member for finance and central services Richard Wilby said: "I am positive everyone wants it to continue"
Speaking after the meeting, Windmill Action Group chairman Jackie Mallinson said: "If everyone works together we are sure it will work. The action group has ideas for improving the profile of theatre and making it a success."
Local residents set up the action group after Arun announced the venue was losing money and it was reviewing its future .
Campaigners enlisted the support of stars including One Foot In The Grave actor Richard Wilson, astronomer Sir Patrick Moore and comic Ronnie Barker.
The action group is looking into the possibility of a trust involving groups that use the theatre.
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