THE future of Camelot Theme Park -- currently voted Lancashire's top tourist attraction -- could be hanging in the balance.

Owners Prime Resorts have approached both the borough and county council to suggest long-term plans for the site in Charnock Richard after an 18-month review of the business.

Council officers said they had not received any official planning application from the firm but confirmed that the idea of developing parts of the 140-acre site had been discussed.

The Charnock Richard park, based on the legend of King Arthur, was opened in 1984 and boasts more than 100 rides.

It was subject to a management buy-out from original owners Granada in June 1998.

Despite being voted the county's top tourist attraction in a 2002 survey and the high profile launches of several rides, including the Whirlwind, attendance figures have continued to fall.

The park suffered a further set back last year when a worker died in a tragic accident.

The shock news that the site could be used for housing comes as the construction of 2,000 new homes at Buckshaw Village is well under way. The development near Euxton fulfils the government quota for new homes across Chorley for the next few years, meaning the council does not have to allow for any more residential developments in its local plans.

Prime Resorts confirmed that is was planning to develop parts of the surrounding land, but denied there were any plans to close Camelot.

Roy Page, chief executive of Prime Resorts, said: "In response to the speculative rumours surrounding the future development of the site, I can confirm that during the past 18 months we have undertaken a complete strategic review of the business, including an assessment of the under-utilised assets on the site.

"As a result a long-term plan to develop areas of the 140-acre site, including parts of the land not currently in commercial use, has been prepared."

He said the firm had submitted a proposal to the county council strategic planning advisory committee that parts of the site be included in the Lancashire County Council Structure Plan as a strategic site for development.

And he added: "The long-term objective is to protect the business for the future, utilise areas of the site currently not in use and create additional full-time employment in the area."

Camelot attracts 35,000 tourists every year and encompasses the theme park, nightclub, 140-room hotel and a conference centre which holds 750 people.

And the news that it may be under threat was heavily criticised by Chorley MP Lindsay Hoyle.

"I believe that it would be a bitter blow if Camelot were to close," he said.

"The theme park employs a lot of local people and is a great tourist attraction. Camelot really puts Chorley on the map and brings tourists to the area.

"The last thing that Chorley needs is another huge housing estate. I am sure people would rather have a theme park there than more houses."

Alan Croston, head of planning services at Chorley Borough Council, said: "We have not received any planning application from Prime Resorts concerning Camelot.

"The current local plan which runs until 2006 does not indicate a need for any new housing in this area."