Council chiefs in Manchester have estimated it will cost around £8m to move the facility from Deepdale to the city's Urbis building.

The steep start-up costs are needed to spruce up displays and ready the Urbis building to display and protect the precious memorabilia.

And they believe the majority of that will be paid for by external funding – with the North West Development Agency (NWDA) mentioned as a potential funding stream.

But the boss of the NWDA has told the Lancashire Evening Post:

* No discussions have been held with Manchester.

* There is no guarantee of capital funding from the NWDA for the Manchester scheme.

* Plans to keep the museum in Preston would need less than half of the start-up cost for Urbis.

Steven Broomhead, who is chief executive of the NWDA, said: "There has been no discussions with us about any guaranteed support for Manchester.

"Our position has always been that the trustees of the museum have got to make a decision about what they want to do. If the trustees decide to move to Manchester, that does not necessarily mean there will be capital support.

"It is a large hole, it is estimated to be between £8-10m to move it.

"If it remained in Preston it does need refreshing, so there would be a need for some capital support.

"Again we have not had any conversations with the trustees about that, but it would be a lot less than £8m.

"Figures of £1m or £1.5m have been talked about.I have got two objectives – make sure it does not close and make sure it stays in the North West.

"Obviously £8m is a lot more than £1.5m, but I can't comment on what our position is until I know what the trustees' position is – and nor can I guarantee capital support."

A report to Manchester City Council's executive committee states: "Overall capital costs are estimated to be up to £8m.

"It is intended that the majority of this funding would be funded from external stakeholders in a partnership arrangement to include a City Council contribution which could potentially be linked to financial contributions from new developments in the area.

Preliminary work has been undertaken to determine the main scope of work required and a project delivery structure and programme.

Further work is now required to finalise capital funding with project partners, in particular NWDA and the associated procurement arrangements."

Coun Michael Amesbury, Manchester Council's executive member for arts and leisure, said: "Steven Broomhead is right – we are not making assumptions. This is not a predatory Manchester approach, we don't see ourselves in competition.

"We were approached when the National Football Museum was facing some problems."

Asked what Manchester Council would do if the NWDA did not offer cash support, he added: "It is hypothetical, we need to find out what direction the trustees are going."

Manchester's Lib Dem group leader Simon Ashley said his group is backing the Labour administration's bid to bring the museum to Manchester and added: "The majority will come from external funding, so at least £4m. It (the report) mentioned the Development Agency specifically.

"Our proportion would be funded through section 106 monies because it would be part of a wider development near Victoria Station."

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