£100m plan for bigger British Museum

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The proposals come after lack of space forced the museum to turn down a unique chance to show off the largest collection of Tutankhamun treasures ever seen in the West.

Instead the exhibition will take place at the O2, formerly the Millennium Dome, in November.

The last time the Tutankhamun exhibition came to the UK was in 1972, and organisers are predicting it will be the most popular show in British history.

The museum aims to ensure it does not miss out in future and is drawing up plans for an enormous exhibition centre at the back of the building.

Another reason for the proposals was the success of the museum's exhibition last year of Michelangelo drawings.

It drew more than 160,000 visitors, making it one of the museum's most popular shows. The museum stayed open until midnight every Saturday, but director Neil MacGregor claimed it could have sold three times as many tickets if it had more capacity.

Despite the popularity of both the Michelangelo show and its Persia exhibit earlier in the year, some visitors complained the space was cramped and inadequate.

Lord Rogers, who designed the Lloyd's building and the Pompidou Centre in Paris, has been commissioned to take charge of the project. The new centre, already estimated to cost £100million to build, could provide up to 1,000 square feet of space and will be situated in Montague Place.

The proposals also include plans for a "world conservation centre" where history enthusiasts will be able to see conservators at work on exhibits.

Discussions are already under way with Camden Council regarding planning permission, and the museum hopes its new building could be open by 2011.