28 January 2011 Last updated at 16:11 ET

New hopes for future of Old Duchy Palace in Lostwithiel

The Old Duchy Palace was purchased by the Prince's Regeneration Trust in 2008

Plans to restore one of the oldest buildings in Cornwall have moved a step closer.

The future of the Old Duchy Palace in Lostwithiel was in doubt after a £400,000 Heritage Lottery Fund application was rejected last year.

A revised scheme, which will have less space for community use than originally intended, will be presented on Tuesday.

The Prince's Regeneration Trust, said its plan would ensure an "exciting" future for the 13th century building.

Ros Kerslake, chief executive of the Trust, said they were hoping to secure funding of about £200,000 from the European Regional Development Fund.

The revised scheme for the grade-1 listed building will allow for a heritage display in the basement, with the main hall and first floor providing office and meeting room space.

Simon Thorpe, of the Cornwall Buildings Preservation Trust, said: "We are committed to conserving this most important historic building and putting it to active use."

The new plans go before Lostwithiel Town Council on Tuesday.