Community groups in Morningside, Merchiston and Marchmont – which are covered by the 3Ms project – fear children will be forced on to the streets if new finance cannot be secured.

The two-year funding package, originally awarded by the Scottish Executive through the city council, will end on March 31st.

It has been used to pay for full-time youth worker Lucy Howie, who has brought in a range of activities since she started more than two years ago.

She has set up successful youth clubs in church halls and at the Warrender Swim Centre in Marchmont, which attract up to 100 youngsters every week and a full programme of summer and Easter holiday activities.

She also worked with the fire service to bring the Cooldown Crew – a campaign designed to reduce incidents of fire-raising – to James Gillespie's High School.

Community groups say her youth clubs have helped take young people off the streets.

Antisocial behaviour, underage drinking and gangs of youngsters were on the increase in Morningside earlier this year.

The increase in vandalism and crime also led in the launch of a police initiative that targeted the area as a trouble "hotspot" during the summer holidays. Suzi Wong, chairwoman of Morningside Community Council, said: "The work carried out by the 3Ms project gives the kids somewhere to go, so it will be a real shame if it has to stop. "What will it leave us with? There will be nothing for the kids to do and nowhere to go.

"It will be devastating for them because they'll end up wandering the streets again."

The project's board is trying to raise awareness of the good work it has done to try to secure funding from elsewhere.

The city's education leader, Councillor Marilyne MacLaren, chairwoman of the 3Ms board, said "negotiations are under way" on future funding, although it was unclear whether the council will commit any money.

In 2006/07, it received £29,947, and in 2007/08 it was allocated a further £31,803 from the community safety fund.

Local churches, community councils and the Eric Liddell Centre at Holy Corner have all been involved for years.

Bob Rendall, chief executive of the Eric Liddell Centre, said it had spent 12 years trying to secure a full-time youth worker.

He said: "It would be really sad if three local wards ended up with no mainstream youth worker."

Merchiston Community Council will discuss the problems at its next meeting on Tuesday 22nd January 2008 at 7.00pm in the Eric Liddell Centre, Holy Corner.