Protestors have campaigned to keep both homes open

The authority wants to build 50 units for elderly residents on the Llys Madoc site, in a scheme costing around £8m, and hopes to start work in April 2008.

A decision on the application is expected in January 2007.

The fate of the other remaining care home, Nant Silyn, will be decided at a council meeting later this month.

Council leader Aled Roberts said the authority was under severe financial pressure to provide support for its elderly residents.

He said current funding from the assembly was insufficient to maintain the council's two existing care homes in their current form.

The council wants to increase the number of facilities known as Extra Care - housing for the elderly where residents live independently in their own flats, but where care is available on site.

The council says the local housing association is prepared to put £3-4m into the scheme, but says it needs the assembly to fund the remaining £5m.

Under their plans, the existing site would be demolished to make way for the new development.

Independent lifestyle

Leader Mr Roberts said: "Elderly people tell us they would like to be cared for in their own homes and we want to be able to help them. Whilst we remain in this situation we are unable to do so.

"The proposal for Extra Care living accommodation is an exciting development, a move in the right direction to ensure that elderly people can maintain an independent lifestyle as much as possible."

The council will meet to decide the future of both care homes later this month - but hopes the future of Llys Madoc will be secured if the assembly grant is approved in January.

Critics have campaigned to keep both existing care homes open, claiming it would be "disastrous" to close them.

Disability and elderly rights campaigner Ken Mack said: "I'm appalled and very saddened. Democracy has been undermined here.

"Of course I welcome new developments, but not at the expense of the existing ones.

"They have subtly closed the home. We need more capacity and choice, not less - where's the choice here?

"I will continue to campaign against this."