A theatre company said it would produce new evidence in an ongoing row over funding of schools drama in Wales.

The Gwent Theatre company is one of three which are fighting the loss of their contracts due to a new strategy from the Arts Council of Wales.

The youth drama company has produced a leaked document from the council, which it said raises further questions over the allocation of money for schools drama in Wales.

The main criticism of the Arts council's new strategy was that more funds were allocated to fewer companies to provide theatre for young people.

That means some theatres may close.

Chief executive Joanna Weston has defended the methods behind the strategy.

"The Arts Council aims to provide a national service," she said.

The National Assembly is set to appoint a so-called "Arts Tsar", to head a wide- ranging review of policy in Wales.

It will mean more pressure on the Arts Council over its decision to re-organise schools theatre.