The Irish rockers are close to making an offer on the EMI-owned Olympic studios in South West London - where they recently recorded new album 'No Line on the Horizon' - after the record label put the legendary venue on the market.

A source said: "Bono, Edge and the rest of the band really enjoyed their time in Olympic. They knuckled down and really responded well to the place's atmosphere."

The building, which is reportedly worth millions, has played host to musical royalty including Led Zeppelin, Jimi Hendrix and The Rolling Stones.

U2 already own studios in Dublin, Ireland, but are seriously considering snapping up the Olympic as a London base.

The source continued: "They feel that Olympic could be a very wise investment. They're totting up some figures at the moment. If the maths works out there's every chance they'll put an offer in."

'No Line on the Horizon' is released in Ireland on February 27, and in the rest of Europe and the US on March 2.