Jamie Oliver aims to be dish of the day at Assembly Rooms

ONE of Britain's best-known chefs is set to do battle with a famous London restaurant for the right to open a fine dining eatery within a flagship Edinburgh Festival venue.

Jamie Oliver's representatives have been given informal viewings of the Assembly Rooms on George Street and are understood to have been "very interested" in opening a new restaurant on the ground floor of the venue.

But the chef reportedly faces competition from The Ivy, a favourite with celebrity diners including Sir Elton John and Tom Cruise.

Argentinean steak house Gaucho has also been linked with a move into the unit, to create its first UK restaurant outside of London.

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It is understood that representatives acting for each of the companies have expressed an interest in the building and are each expected to be asked for formal notes of interest if the controversial proposals to redevelop the ground floors of the historic building get the go-ahead from councillors today.

One industry insider said: "There's been a lot of interest already."

There are already 15 Jamie's Italian outlets in the UK, while he is also behind the Fifteen and Barbecoa restaurants in London.

Peter Barry, Jamie Oliver's spokesman, was not available to comment on the move today, although he said previously that Edinburgh would be a "brilliant place" for one of Oliver's restaurant brands and a move into the Capital was expected "at some point soon".

A series of top retail names are also understood to be interested in the two new shop units being created, including Japanese retail giant Muji, fashion chain Hackett and menswear firm Charles Tyrwhitt.

Councillor Tom Buchanan, the city's economic development leader, said: "A refurbished Assembly Rooms will create further niche retail and restaurant opportunities on a street that is fast becoming recognised for its quality and diversity. The development will join Primark in breathing new life into Rose Street."

The new restaurant would be created within the existing supper room and Edinburgh suite on the ground floor of the Assembly Rooms.

The shops are due to replace the Wildman room and Scott room, both used as festival venues but largely storage spaces throughout the rest of the year.

Bosses at Assembly Theatre, which operates the Fringe venue in the Assembly Rooms, have campaigned for a smaller refurbishment and were today set to launch a last-ditch plea to councillors to block the plans.

A spokesman for Caprice Holdings, parent company of The Ivy, declined to comment in detail about any plans to move to Edinburgh, but said it had not yet expressed an interest.