A Darlington nightclub is poised for a £1m overhaul, despite talks that could see it demolished to make way for a shopping centre extension.

The Plastered Parrot, in Commercial Street, is undergoing a major refurbishment to attract older people by creating a more sophisticated image.

The main area of the club will close on Monday, August 19, for alterations which will allow it to open during the day as a restaurant, as well as at night.

The club will reopen in October with an over-21s only door policy and a new name - The Lounge.

General manager Leanne Mann said: "We are not going to be classed as a nightclub, but as a late-opening bar.

"The downstairs is going to have a complete refit, with the bar being repositioned and windows installed, making it more suited to a daytime and early evening service.

"It is going to look very impressive, so we don't want the young ones wrecking the place."

Absolute Leisure, which owns the club, is hoping the investment will end rumours that the venue will close if the neighbouring Queen Street Shopping Arcade is extended.

However, Darlington Borough Council said last night that the future of the club could still be in question.

The authority is in discussions with landowner St Martin's regarding the extension of the shopping centre into Commercial Street, creating a large pedestrian area. If this happened, The Plastered Parrot, which is on council-owned land, would be in the middle of the potential building site.

Absolute Leisure pays ground rent to the council for the land on which the club stands.

A spokesman for Darlington council said: "Discussions regarding the area behind the Queen Street shopping centre and how it will be developed are ongoing.

"No decisions have been made either way, and to speculate at this stage would be wrong."

Tony Knox, managing director of Absolute Leisure, said: "We have not been informed of any proposed development.

"It is our building, and we will do what we want with it. As far as we are concerned, it is business as usual."