The Carlton cinema site on O'Connell Street in Dublin is a potential location for the redevelopment of the Abbey Theatre, the Minister for the Arts has confirmed.

However, Mr O'Donoghue stressed that its suitability "will become clearer after judgment has been given in the High Court hearing into Dublin City Council's compulsory purchase order" for the prime location.

Reiterating comments he made in the Dáil in February, the Minister told Fine Gael leader, Mr Enda Kenny, that redeveloping the existing site would be "extremely problematic" because of the difficulties in acquiring adjacent property. "It appears there will be little alternative other than to look elsewhere."

During Arts, Sports and Tourism questions, Mr O'Donoghue said that most people would prefer the Abbey, which this year marks its centenary, to be located in the city centre and "I sincerely hope that an adequate site becomes available, in the centre preferably, because that is what most people desire.

"It is clear that, despite our living in one of the most imaginative and creative generations of Irish people, there is no architectural public expression of that creativity or imagination and this project presents the opportunity to do precisely that."

Mr Kenny, who had asked the Minister to confirm that the Abbey would not be redeveloped at the existing site, said that a blueprint of the theatre's requirements developed by the Office of Public Works and the Abbey project teams "could fit into the Carlton site, depending on how much ground is made available".

He also asked if other locations such as the Dublin docklands or a greenfield site were being located. In reply, the Minister did not refer to other locations but said that the new theatre "must be a signature development that is reflective of a national theatre in the 21st century".

The new theatre will have three enlarged auditoriums, an education and outreach facility, an archive, a restaurant and bar, public areas, disabled access for audiences and artists, theatre production facilities and a multi-purpose space.

Mr Kenny who visited the theatre last week said the "facilities, space and entire area are totally outdated, outmoded and antiquated. I compliment the 100 or so staff on their work in promoting our national culture. The backstage and upstairs of the building are too cramped, crowded, damp, dark and unfit."