A specialist entertainment and business events consultancy has been brought in to help determine the future of Preston's Guild Hall, which has been closed for four years.
IPW has been commissioned to carry out a feasibility study into options for the venue, which has been closed for four years.
No decision has yet been made on the Guild Hall's future and a report outlining the consultancy's findings is expected later this year.
Coun Matthew Brown, leader of Preston City Council, said: "We recognise the need for, and how important it is, to have a large-scale entertainment and conferencing centre in the city centre and we are exploring all possibilities for the Guild Hall's future.
"We continue to lobby for further central government investment in the city to support Preston's arts and culture sector because, whether we decide to refurbish the existing building or demolish it and build a new venue, the costs are way beyond anything the city council can afford on its own."
The council has previously said it remains open to either refurbishing the Guild Hall or replacing it with a new venue. Initial estimates have put the cost of either option at more than £70m.
Coun Valerie Rawlinson, cabinet member for resources, previously said the authority was committed to bringing forward a solution for the venue within the next 12 months.
She said the council was not tied to the Guild Hall's existing footprint but acknowledged its city centre location, close to major transport links, remained a significant advantage.
Jen Cleary, North West director at Arts Council England, said: "Arts and culture are fundamental to thriving towns and we welcome the work Preston City Council is doing to explore the future of the Guild Hall and its cultural offer.
"As the national development agency for creativity and culture, we'll continue to partner with the council to offer support and advice on funding streams and strategic development as it completes its feasibility work."
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