The pub company which caused an uproar when it banished Harveys Best Bitter from a pub may be preparing the ground for a dramatic U-turn.

Greene King, stung by intense criticism and an ongoing boycott over its decision to exclude the locally-brewed beer from the Lewes Arms in Lewes has launched a root-and branch reorganisation of its business.

Mark Angela, managing director of Greene King's Pub Company and the public face of its battle with Harveys drinkers, is to leave and a new Local Pubs division will be set up.

A statement on the company's website said: "In the Local Pubs division... pub managers will be given greater autonomy and flexibility to match the individual pub offer to local market needs and opportunities."

Greene King's chief executive, Rooney Anand, said: "The increased specialisation brought about by the split will ensure that we continue to recognise and celebrate pub differences and to provide the best possible service to all our customers."

The move could be interpreted as a sign that the chain wants to rebuild its bridges with the community, following a period of bad publicity.

The Suffolk-based company has already made a compromise by agreeing to consider the return of Harveys on a temporary basis as a guest ale.

Norman Baker, Liberal Democrat MP for Lewes, said yesterday he hoped Greene King would either announce a full U-turn and reintroduce Harveys on a permanent basis or sell the pub, in Mount Place, Lewes.

He said: "For Greene King this has been a PR disaster. How many more bad headlines are they going to need before someone sees some sense?"

The campaign to keep Harveys in the Lewes Arms, which was bought by Greene King in 1998, has been backed by local members of the Campaign For Real Ale.

Lewes Mayor Merlin Milner has described Greene King's behaviour as "a good example of corporate homogenisation".

Coun Milner pointed out that Harveys Best made up 80 per cent of cask beer sold at the Lewes Arms prior to its removal.

Greene King was asked to provide a comment for The Argus but failed to do so.

Have you boycotted the Lewes Arms over the Harveys row? Would you go back if Harveys was again made a permanent fixture in the pub? Have your say below.