'Teletubbies knoll' that could face Tower Hill...

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Going green: a computer image of how The Hill arts centre on the South Bank would look - something like the home of a Teletubby

The grassy knoll could be built near Tower Bridge and would be called The Hill. Part molehill and part pleasure garden, it would be built in an area at Potters Fields and contain a £175m arts centre including " installations, rides and live performances".

An outline planning application is being drawn up for the project. If given permission, it is hoped that The Hill would be built by 2012 and take its place among London's quirky and distinctive landmarks such as the Gherkin, the helmet-shaped City Hall and its sunken amphitheatre The Scoop.

Mole hill: the grassy knoll design of the arts centre

The project is said to have the backing of Dame Judi Dench and Emma Thompson, and is being billed as an urban Eden Project.

Artistic director Simon Elliot said: "It will be like the Turbine Hall in Tate Modern but more playful and fun. People feel disenfranchised with the high end of arts culture and we want to bring in the kind of audience who would be happy at a football match."