AGE Concern was this week locked in negotiations with Hyndburn Council leader Peter Britcliffe in an 11th hour bid to save the charity's popular cafe.

Councillor Britcliffe said: "The cafe provides a lifeline for many and I hope that by next week at this time there will be some good news to report.''

The cafe, on Whalley Road, had been earmarked to close at the end of this month amid concerns it was losing money.

Last week pensioners delivered a 250-signature petition to Councillor Britcliffe.

News of the closure was greeted with dismay by pensioners, many of whom have been going there for years.

Angry customer Arthur Smith, 84, of Fordside Avenue, Clayton-le-Moors, who handed over the petition, said he had heard Age Concern had received a further £10,000 for this financial year from the council.

This is in addition to £20,000 allocated to the charity since 2005, making a total allocation of £30,000.

Former councillor Mr Smith is now demanding to know why the cash cannot be used to save the service.

He said: "I have been led to understand that a grant will be given to Age Concern to cover the next year up until 2008.

"If this is so, I hope chief executive Patrick Collister and his staff will reconsider their decision to close the cafe.

"I hope the planned closure will be brought up at the next annual general meeting as I would like this to be put on the agenda.

"If anyone can help us, please do so. I would also like to thank everyone who has written to the Observer expressing support for the cafe."

He added: "I go down to the cafe every day and it's a shame it might close. It's something that's really needed.

"I feel like we've been hung out to dry.''

Mr Collister confirmed he was negotiating with Hyndburn Council to try to save the cafe.

He said: "It is true we have received £30,000 from the council but this is restricted funding which means it can only be spent on upgrading our advice and information service.

"Before 2005 we used to get unrestricted funding from the council which could be spent anywhere. But now we only get the unrestricted funding which we cannot use to save the cafe."

A closure party is being held at the cafe on Tuesday.

The cafe is currently open from 9am to 3.30pm on weekdays and Saturdays.