ALEXANDRA Palace will be transformed into a top live music venue under plans unveiled this week.

The idea, which came as the result of a three-month consultation, was given the green light by the palace's Board of Trustees on Monday night.

Under the proposal, preparing the venue for live music concerts will be at the core of a year-long planning process, which will look for partners to make the idea a reality.

The Trust hopes that increasing the number of concerts will encourage other businesses, such as hotels, restaurants and bars, to open in the vicinity, increasing revenue at the Palace, which currently costs Haringey taxpayers £2 million a year.

But the project still needs to secure funding – managers estimate restoration work to the building will cost £29 million alone before any further work can begin.

Councillor Pat Egan, chairman of the trustees, said: “By identifying a strong strategic concept, which retains its integrity as a rich community asset, we hope we have now started a process which will ultimately provide a sustainable future for a regenerated Ally Pally.

“In years to come, I hope it will become known as London’s top leisure and entertainment destination, providing enjoyment for all, generating employment and income for the borough and staying true to its original purpose as the 'people’s palace'.”

The Trust hopes that deciding on an ultimate purpose for the building will draw a line under a series of blunders, including an aborted plan to sell off the palace to a private developer in 2007.

An independent report into the dispute estimated that losses to the charitable trust running the palace were in the region of £1.5 million, while former council leader Charles Adje was found guilty of misconduct over the affair last month.

Rebecca Kane, managing director of Alexandra Palace Trading Limited, said: “Live music was one of the main things that was held in this building when it was built back in 1873.

“We're not trying to compete with places like the O2, but they attract certain types of artists and we attract other types – I believe we can offer a unique experience for music.

“We have done market testing to see if the big music companies are interested and we had a positive response, so this is absolutely part of the vision for the future.”

Ms Kane also promised the popular ice rink – which has recently reopened after a £2.3m refurbishment – will stay as part of the plans.

Cllr Egan added: “We have been very keen to involve our community in the plans and consultation and make them a part of the palace's future.”

Sport and recreation activities are seen as complimentary to the live music future – last month it was announced that Masters snooker would move from Wembley Arena to the palace from next January.