The prime real estate on Wentworth Avenue where the buildings now stand would then be sold.

Chief Minister Jon Stanhope stressed the proposal had yet to be approved by the agency's board or the Government.

However, he highlighted the value of the land on which the old bus depot stood. ''The existing buildings housing the markets have not been listed by the Heritage Council and are not in keeping with the high-quality of development elsewhere at Kingston Foreshore,'' he said.

''This valuable site represents excellent redevelopment potential and proceeds from the sale of the site fronting Wentworth Avenue will fund the construction of the new building [for the markets].''

Mr Stanhope guarantees the award-winning Old Bus Depot Markets will remain in the Kingston precinct whatever the decision.

If a new building is approved, the markets will be run from an undercover car park for 12 months until the construction finishes. The ACT Heritage Council has decided the 1940s buildings, which were once used to service Canberra's buses, lack the historical or architectural value to warrant listing on the Heritage Register.

Full story in today's Canberra Times