The proposal would create the most advanced training centre at any working theatre in the UK, and attract interest from around the world.

By joining forces with schools, drama academies, colleges or universities, trainees would be able to get hands-on experience at the theatre, rather than learning in the classroom.

The plans, which will be presented to councillors in the new year, are designed to secure a long-term future for the under-threat venue.

The council's financial situation means the 101-year-old theatre faces a six-year wait for vital refurbishment work to begin, despite warnings that health and safety requirements could force its closure within two years.

John Stalker, chief executive of the Festival City Theatres Trust, which runs the venue on behalf of the local authority, believes the council could find the money if it wanted to.

The proposals for an academy are at a very early stage, but Mr Stalker hopes the suggestion may help persuade councillors to put up the required funding.

"The King's Theatre is only used around 24-to-26 weeks a year, so I'm looking to add daytime activity, rather than just 20 more weeks of shows," he said.

"So, looking at the area of training and development of practitioners, we identified a great advantage of doing this in a theatre rather than a classroom, by collaborating with higher and further education establishments. (The academy] would be the first of its type in the UK, and offers an unique opportunity for Edinburgh, which could be marketed and sold overseas.

"It could offer access to a wide range of activities, such as dance, theatre technical skills, management, and sound technicians.

"At the moment, it's a blank canvas – but I want something that is unique and exciting for Edinburgh."

Such a project would require major funding to upgrade the stage equipment at the King's.

But by finding a use for the venue outwith the 24 performance weeks, it is hoped the academy would give the theatre a more viable future.

The idea has already received the backing of local Labour MSP Sarah Boyack.

She said: "This is an excellent idea and a superb opportunity to train people in theatre skills.

"Much of the King's Theatre is under-utilised and this would help secure its future and make best use of its space."

Earlier this month, a grassroots campaign was launched to save the theatre, after a group was set up among Tollcross residents and traders.

Former students' leader, Rami Okasha, who is co-ordinating the campaign, said the full refurbishment of the theatre had been estimated at £20 million, but there were immediate safety issues which could be dealt with for less.

The academy plans are due to come before the council's culture and leisure committee in February.

City culture leader Deidre Brock said: "These are exciting ideas and we look forward to hearing more about the plans and working with the King's as they develop them."

Save the King's Theatre