Theatre bosses were staying tight lipped today after a director walked out on a new musical over a backstage bust-up.

It is believed Lucy Bailey resigned after being told that her version of Cabaret would be "too steamy" for audiences at Chichester Festival Theatre.

The musical is due to open in just two weeks.

The show is to go on but with a new director in charge after the theatre confirmed that Miss Bailey had left because of "artistic differences between her and the management."

Cabaret is set in a sleazy nightclub in the decadent Berlin of the 1930s and the film version starred Judy Garland's daughter Liza Minnelli.

A spokeswoman for the theatre said it was not prepared to add to a statement confirming that there had been "irreconcilable" differences with Miss Bailey, who has been replaced by Roger Redfarn, the director of several previous productions at the theatre.

Miss Bailey's agent said: "We are currently in discussions with the theatre and cannot make any further comment at the moment."

Behind the scenes, it is believed that Chichester's artistic director Andrew Welch was worried the production might be too raunchy for the theatre's mainly middle class and elderly audience.

The theatre nearly closed four years ago after a cash crisis and was only saved thanks to huge grants from Chichester District Council and West Sussex County Council.

It is believed further grants are dependent on the theatre reaching targets including audience figures.

Today, the theatre confirmed that Cabaret would open for previews as planned on July 25 with critics due to deliver their verdict after the official opening night on July 31.