The Malt Shovel, in Hargrove Avenue, is reported to have been suffering from dwindling income and could be developed into 14 apartments.

Mr Alan Kinder, on behalf of owners Mitchells (Brewery) of Lancaster, said: "The pub has been struggling for a few years now. The current tenants who have the building make a bulk of their income by letting bedrooms rather than beer sales. This development will help revive the long-term future of the property. The building is listed which meant we had to devise plans making use of the current property.

"The plans comprise eight self-contained apartments in the existing building and six new-build apartments at the rear in the grounds of the current car park. People seem supportive of the idea. The intention is for the apartments to be privately owned within their own landscaped grounds. It will be an upmarket residential scheme and should boost the visual amenity of the area as well.

"The pub has not got the support of the public to warrant any further investment."

If planning permission is granted by Burnley Borough Council, it will be hoped a developer will be found to move the scheme forward as soon as possible.

Meanwhile, the pub will remain open for business. "We would not want the pub to close and the building to be empty for fear of vandalism," added Mr Kinder.