The Arts Council has denied it ignored advice to keep funding Watermans as the feud between top brass at both institutions deepens.

Yesterday Watermans officials accused the Arts Council of dismissing advice from experts to continue grants to the arts centre.

Watermans claimed to have issued a Freedom ofInformation Act request, allowing them to see how the decision wasmade. The documents reportedly reveal that the council knew that acut of that size would have a devastating effect on the arts centre andthe provision of Black, Asian and Minority Ethnic Arts in West London.

But today a spokesperson for Arts Council England said: "For the record, the document referred to was not released to Watermans under Freedom of Information but as part of confidential documents exchanged in the course of the legal proceedings.

"The comments by Arts Council staff do not advise against non-renewal of funding but ask that possible impact be taken into account. Consideration of all factors and points of view was an important part of our decision making process.

"As we have previously stated, Arts Council England in no way concedes that the decision not to renew Watermans' funding was wrong, or that the way in which that decision was taken was unfair. We have offered to put the funding proposal before our Regional Council again, in order to avoid the expense and delay of a hearing, because we are mindful of the need to protect public money."

Watermans is now asking for temporary funding while a decision over whether to go forward with a judicial review is made.