Work could start in the next couple of months on the £1 million transformation of a historic Victorian factory and warehouse into arts and business workspaces.

Leicester City Council is set to turn the grade-II listed site next to the Curve in Rutland Street into 11 workspaces.

The council will fund about £400,000 of the work. The remaining £640,000 will come from European Regional Development Fund cash which was granted in 2008.

City council head of economic regeneration Mike Dalzell said: "The development is two doors up from Curve, and involves two derelict buildings owned by the council. We're just finalising costs to create 11 new workspaces aimed at businesses that might be growing out of the nearby LCB depot and creative businesses such as ceramics, fashion and artists.

"Work will start soon."

The council bought the freehold of the then occupied building in 1982. It has been vacant since 2002. The building was listed in 2006.

The council marketed the property in August last year with a guide price of £400,000. Two offers were received, but both were for less than £200,000 and the authority decided to reject them.