On Tuesday, council bosses will decide whether the scheme, which has been developed by Headingley Development Trust (HDT), should be supported.

The council-owned school shut last year and the Trust have been working over the past year on plans to transform it into a £1.3 million Headingley Enterprise and Arts Centre (HEART).

Council officers have recommended in a detailed report to the executive board that HDT should not be given more time to work exclusively on the plans, should not be supported in a bid for government money and that the school should be marketed for sale.

Headingley Development Trust member, Lesley Jeffries, said: "It is on a knife-edge at the moment. If this goes down the consequences psychologically to the people of Headingley will be devastating.

"We have spent months working on HEART, which will put the heart back into the community."

She also urged council leaders to make what she said was the right decision for Headingley's future, and for supporters to help lobby them ahead of the meeting.

Proposals for the centre include converting the first floor into a business hub or catalyst centre, offering workspace for start-up businesses and hopefully subsidising community activities in other parts of the building.

The ground floor will be split into three sections - an exhibition space, meeting rooms and a conservatory extension to house a new cafe.

Vitally the trust missed out on a lottery grant for the project and would now rely on the council using a substantial chunk of a government grant to fund HEART.

Headingley councillors have supported the plan and found £100,000 to support the project from the North West Inner Area funds.

Coun James Monaghan (Lib Dem) said: "Local ward councillors support HDT 100 per cent and will be lobbying the executive board to support their proposals, or to give another extension for them to find some new funding.

"I hope people will see that we have done everything we can do."

Over the past two years since forming HDT has attracted nearly 700 members and raised £100,000 for the buy-out of a local shop, as well as organising the suburb's popular monthly deli markets.