Much of the roof of Bath Place Community Venture was destroyed in a blaze on September 24, only days before staff were due to celebrate the building's 150th anniversary and its 35th year as a community centre.

Warwickshire County Council owns the building, and officials are still investigating the cause of the fire and considering the future of the site.

The council's head of property Steve Smith said that although insurers were likely to settle for a 'repair and restoration', officers were looking at other options including a new extension or simply moving the services elsewhere.

He said: "A restoration project will be difficult and it will be slow and painstaking. The building we would end up with would be a half old and half new with the energy efficiency and all the things that come with an old building.

"Other options appeal as much if not more."

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He stressed the building was not listed and not that significant" compared to others the council owned, adding there was an opportunity to bring the site into "regeneration".

Mr Smith estimated the rebuilding costs would be more than £1 million and added that councillors would make the final decision.

Although the cause of the fire is still being investigated, Mr Smith said there was no evidence of arson or wiring problems where the fire is believed to have started. Contractors were working on the roof of the Victorian building when the fire started.

Mr Smith will be meeting the venture's director Steve Baylis next week. He admitted improvements could be made but said staff were committed to keeping services at Bath Place.

He added: "It is out of our hands but we have to fight as advocates of the building. It is an iconic part of Leamington history and as such it needs to be maintained and preserved."

Mr Baylis acknowledged the land might be of more value if Bath Place was sold, but said the venture's own efforts would go to waste if it was simply sold on. He said: "We have spent more than £100,000 of our own money on the building. If they demolish it, all that time and money is wasted."

Cllr Tim Naylor (Lab, Leamington Willes) said: "A rebuild would find favour with a lot of folk. Bath Place has a long and colourful heritage. A lot of people have a lot of affection for Bath Place. It's part of Leamington history.

"We don't want to lose any of our architectural heritage but I couldn't pretend that it isn't an opportunity to improve the efficiency and effectiveness of the use of space."