Brentford's Watermans Centre is threatening to take the Arts Council to court after its appeal to prevent a funding cut was rejected.

The multi disciplinary arts centre is calling on the public, more than 3,000 of who have already signed a petition against the cuts, to continue to support it.

The centre appealed against the Arts Council's decision not to continue funding, worth just under £500,000 - about a third of its budget - in December.

But bosses were told by letter this week that its appeal had been rejected.

Today the Arts Council announced its regular funding decisions for 2008 to 2011.

The body, which is responsible for investing £1.1billion from Government and the National Lottery in the arts, said it would be supporting organisations including Queer Up North, African and Caribbean Music Circuit and Richmond's Orange Tree Theatre but not the Watermans Centre.

Councillor Peter Thompson, leader of Hounslow Council, said: "This is an outrageous decision. We are extremely disappointed, but this is not by any means a done deal and we will be supporting Watermans in their appeal, and other legal measures to have this decision overturned.

"I am personally seeking a meeting with the chair and chief executive of the Arts Council to demand an explanation. This decision is based on shoddy evidence and a total lack of consultation. We are appalled by the whole process and this entire affair leaves a nasty taste in the mouth.

"I would like to reiterate that Hounslow Council will continue to financially support Watermans, and work with it to secure its future."

A spokesman for the Arts Council said: "Our proposal not to renew funding to Watermans is upheld. We considered carefully the organisation's response, but do not believe our investment will be best served by the company in the future.

"Despite significant investments aimed at stabilising Watermans, our concerns about the organisation's artistic programme, fundraising and audience development remain and we do not believe Watermans to be a viable investment as a fit for purpose arts facility.

"We will, however, be open to future discussion with London Borough Hounslow about how a good quality artistic programme might be delivered for the borough should the proposed new venue be developed successfully.

"We remain committed to support for work by South Asian artists and that engages South Asian communities, as it is delivered across London by a number of organisations, including Arcola, Arts Depot, Tricycle, Tamasha, Kali, Akademi, and Akram Khan."