Council chiefs have started negotiations to take over Clevedon's Clerical Medical offices when they close for the final time later this year.

North Somerset Council leader, Councillor Nigel Ashton, has instructed officers to launch talks with the owners of the building with a view to the authority leasing it and basing some of its services there.

The insurance giant announced in June it was to close its Clevedon office at Tickenham Road by the end of 2009 and move 500 staff to its offices at Harbourside in Bristol

Mr Ashton said: "As soon as I heard the office was being closed I thought it would be perfect for the council. I drive past it every day on my way from Portishead to Weston and it is well located, close to the motorway and with good public transport links.

"My office and the chief executive's office would remain in Weston. But we have a number of small outlying offices in Nailsea, Long Ashton and other parts of Weston and it would be beneficial to have these staff working under one roof."

Mr Ashton added the move would also provide a boost to Clevedon's economy by helping to bring jobs back into the town. He said: "This isn't about creating new jobs but over time simply through natural turnover, positions will become available in Clevedon.

"It would also provide us with a flagship base in the north of the district.

"We could hold north and central area planning meetings here to save residents having to travel to Weston and it would help with the perception in the north of the district that North Somerset Council has a Weston bias."

The proposals have been welcomed by traders in Clevedon, who have seen business decline since Clerical Medical staff started their phased move to Bristol.

Lesley Butler, landlord of the Old Inn, said: "Our lunchtime trade has dropped off significantly since people at Clerical Medical began fearing they would lose their jobs.

"We would welcome it if the council took over the building and kept this part of Clevedon busy."

Mr Ashton said the office, which can cater for up to 900 people, would be too big for the council on its own but it was in discussions with other public-sector partners about sharing some of the space. The authority is currently going through a review of its internal support services, with some jobs being privatised, and it is possible some of its sector partners might also locate there.