Bosses at Lancashire Care NHS Trust put forward four possible sites around the city for a new multi-million pound facility as part of a radical £150million county shake-up announced in October.

But this week, a top planning officer at Lancaster City Council told the Guardian that two of the sites can effectively be ruled out, while one of the remaining options – near the old Royal Albert Hospital in Ashton Road – is a likely option.

Martin Culbert said planners would "discourage fairly strongly" proposals north of Galgate and in Wyresdale Road, and added: "The only site I have discussed with them (the trust) is the Royal Albert fields site.

"I cannot see any reason why we should be negative about a proposal there.

"I don't see any reason in principle why they should not be looking at it as a preferred option."

NHS bosses already own the Royal Albert fields site and, although it is currently undeveloped, it could be built on, in line with the city council's Local Plan.

This would let the trust sell the existing mental health unit – and fourth site option – at Ridge Lea in a money-spinning deal for new housing.

Ward County Coun Chris Coates, who also sits on the city council's planning committee, said: "I have heard that staff do not like Ridge Lea and it is tainted by the old mental health ethos.

"Royal Albert fields would be the preferred option but not for good reasons."

Residents in the Royal Al-bert Cottages, which back onto the proposed site, have set up an action group, insisting they have not been quizzed during the consultation and fearing the trust has already decided on building behind their homes.

A spokesman for Lanca-shire Care NHS Trust said: "The trust board have yet to make the decision of the preferred site for any of the areas in Lancashire."

He added: "It is hoped that all the information will be ready for consideration over the next month or so."