SHEFFIELD Theatres were encouraged this week to pursue a £1m project to upgrade parts of the Lyceum Theatre.
Proposals to refurbish part of the Grade II listed and improve technical facilities have passed the initial test of Arts Council England.
Now theatre managers have 18 months to firm up the details ready for a second stage assessment.
No funding is guaranteed at the moment.
The Arts Council programme aims to support organisations to become more sustainable through the consolidation and improvement of existing buildings and equipment.
It says upgrading the Lyceum will help attract major productions to the Lyceum, resulting in bigger audiences and a stronger future.
As part of the same initiative, York Theatre Royal has passed the first round with its plans to extend and refurbish its building as well as to create a new performance space.