The British Airways (BA) London Eye could be near to ending the ongoing argument over proposed rent increases which has led to rumoured eviction threats against the tourist attraction.

The South Bank Centre (SBC), which owns the land the Eye occupies, had issued its owner – the London Eye Company (LEC) – with an eviction notice, effective from 1 July, reportedly following the LEC’s opposition to a rent increase from £65,000 a year to £2.5m.

The London Eye Company is equally controlled by architects David Marks and Julia Barfield and The Tussauds Group, which was appointed operator in perpetuity by BA.

However, according to recent media reports, the argument between the parties could be near resolution. If this were to occur, it is understood that a refinancing and exit by British Airways could take place, with Tussauds and Marks Barfield understood to have first refusal on BA's stake.

Tourism officials have said that if the wheel were to close, it would be ‘disastrous’ for the city.

Mayor of London, Ken Livingstone, criticised SBC chair Lord Hollick last month for potentially threatening the Eye's future but maintained in a speech to the London Assembly that, one way or another, the attraction's future would be safeguarded. Details: www.londoneye.com