Managers at the Castle Donington base are considering the expansion to cope with the high number of passengers expected to use the airport in the future.

Current facilities could cope with another one million passengers but the dramatic growth of low cost airlines means this may not be enough.

Managers say the plans are at a very early stage.

Planning application

The government is currently looking at how to develop air travel for the UK as a whole and one of the options being examined is the building of a second runway at Castle Donington.

Now it has emerged a second terminal may be built at the airport.

Managers say they are preparing a planning application to massively expand the airport's capacity.

If approved, the intention is to build a new terminal costing in the region of �40 - �50m by the year 2010.

But the proposals are likely to prove unpopular with campaign groups which do not want the airport developed.

They argue the noise of planes from East Midlands Airport is already very disruptive for people living in the area.