The "managed zone" will be one where prostitutes can operate without fear of arrest.

"We're brave enough to have taken the first step in Liverpool and opened up the serious, adult debate which we must have," said councillor Richard Kemp at a conference on Thursday.

The zone could be in an industrial estate near the city centre, removing prostitution from residential areas.

Prostitutes would be protected from violence

Marika Van Doornink, from the Institute for Prostitution Issues in Amsterdam, said decriminalisation would improve the judicial and social status of prostitutes.

Ms Van Doornink helped set up Amsterdam's red light district, and is regarded as an international expert on the issue.

If the plans are approved in Liverpool, other parts of the UK could follow suit.

Representatives from Middlesbrough also attended the conference.

Middlesbrough councillor Ken J Hall said: "We know prostitution is a problem in Middlesbrough, as it is in many places across the country.

Sexual health

"Our focus has been on publicly naming and shaming kerbcrawlers, which has been successful, and also helping women leave prostitution.

"But it's also vital that we find out how other towns and cities are tackling the problem, and that's why we're in Liverpool to see the work taking place."

If the scheme does go ahead, CCTV cameras and new street lighting would be introduced to protect prostitutes from violence.

There would also be facilities on hand to offer them advice on sexual health.

A similar scheme to the one planned for Liverpool was attempted in Edinburgh but it was scrapped in November 2001 following complaints from residents.