Bristol's political leaders have given their backing to a long-awaited arena next to a new football stadium at Ashton Vale.

The cross-party support is a massive step towards a major indoor venue in the region for rock concerts and other large-scale events.

It was revealed last month that OCT, an international company which specialises in promoting concerts and building arenas, is very keen to build one in Bristol if a site was to become available.

The company, the Creative Entertainment Group, which brought Elton John to Ashton Gate, has promised to build a world class venue if it gets the chance to do so.

Simon Cook, deputy leader of the ruling Liberal Democrat group on the city council, said part of the Ashton Vale site had been "freed up for other purposes" following a decision by councillors last week to support a football stadium on greenbelt land next to the Long Ashton park and ride – but to refuse to support more than 100 homes on a greenbelt site nearby, called Southlands.

Mr Cook said: "We are very keen to have an arena in Bristol and this would be the perfect site. There would be a natural symbiosis between an arena, a new stadium, the food and hotel facilities, car parking and new transport infrastructure.

"We have some extremely good smaller venues in Bristol, such as St George's and Colston Hall, but we desperately need somewhere to stage the big events that only an arena could cope with.

"If we did get an arena at Ashton Vale, then it would not only be for rock concerts.

"I envisage it would be used for a wide range of events such as exhibitions or sports such as ice hockey, for example."

Tory leader Richard Eddy said: "If Bristol is really serious about joining the premier league of Britain's cities, then the provision of a first-class arena is long overdue.

"However, if the ambition of a new Bristol Arena is to be realised, it is essential that the necessary transport infrastructure is delivered on time and that the private sector plays its full part in terms of investment."

Labour leader Helen Holland said: "Like many Bristolians, we were hugely disappointed when the South West RDA pulled out of previous plans for an arena at Temple Meads because of spiralling costs.

"An arena is still very much on our shopping list, matching our ambitions for the city, and we met with several arena operators and developers when we were running the Council.

"Both sites have potential benefits, the city centre because it is already well connected, especially by rail, and Ashton Vale because it makes the most of the infrastructure being installed for the Stadium."

The football club has made it clear it does not mind how Southlands is developed, as long as it generates the funding needed to help pay for a new stadium.

If homes were built at Southlands, then it would produce an estimated £5.5million towards the overall cost.

The last plan for an arena in Bristol was driven by the South West Regional Development Agency, a Government body which was set up to initiate regeneration schemes and create jobs in the region.