A bid to turn an amusement arcade into Newcastle's third casino is decided today - with opponents claiming the central location is unsuitable for the city's image.

The application has been made by the Gateshead-based Noble Organisation, which wants to convert its centre in Queens Square, off Northumberland Street.

The ruling Liberal Democrat group has already voted informally against a Las Vegas-style super-casino in the city.

But council officers say that moral objections are not an acceptable reason for refusing this planning application for a smaller venture.

A report to today's development control committee meeting recommends granting permission for the casino, saying it falls within the council's development plan and the venue would keep a similar leisure use.

The development would still depend on the company being approved for a licence by the Gaming Board for Great Britain and magistrates.

Labour councillor Nick Forbes, whose Westgate ward the casino would be in, said: "I think it's a completely inappropriate place for a casino. It's bang in the middle of the city centre.

"It's right near the Central Library and a Methodist church.

"It's probably the place in the city where you're most likely to find families and children, and I think a casino there is completely the wrong image. There are plenty of other locations in the city centre which are much more suitable."

But Liberal Democrat executive member for development and regeneration Greg Stone said: "There's already casinos of a small scale in the city and this is already an arcade. If people are going to gamble, they can do it in the slot machines already, so I'm not overly concerned by this."

The Noble Organisation refused to comment.

Councillors are currently considering whether to apply for a Las Vegas-style super-casino licence for the city.

Newcastle United have been in talks with entertainment firm MGM over a possible casino near St James's Park, while the site of the former Tyne Brewery has also been mooted as a possible location.

Sunderland Council has already indicated it will bid for a licence, and plans have been lodged for a complex next to Sunderland Football Club's Stadium of Light.

The Middlehaven regeneration site in Middlesbrough has also been proposed by the town's elected mayor, Ray Mallon, as a possible site.