An award-winning special school has lost its battle to stay open.

St Anne's Special School in Lewes is to close by 2007.

Headteacher Gill Ingold received the decision of an independent adjudicator yesterday and tearfully broke the news to staff after school.

It has been a hard-fought battle for parents and staff who have tirelessly campaigned to save the school.

Mrs Ingold said: "We are devastated by the adjudicator's decision to close such a fantastic school.

"The council, Ofsted, the Arts Council and many other people have paid tribute to the high-quality of education at St Anne's.

"In addition, we have recently been thrilled to win The Argus Achievement Awards School of the Year Award.

"The staff are committed to continuing to provide the best possible education for our pupils while we remain open.

"We feel we put up a good fight and we presented the best possible case against the closure.

"I would like to warmly thank all of the many people who helped us in our campaign."

The closure will be phased out with the primary school section closing in September 2005 before the remaining secondary school closes on August 31, 2007.

Cabinet members on East Sussex County Council voted to close the school, which has 75 pupils, in December, as part of a county-wide review of special needs education.

The decision was made because of a drop in numbers but the council was accused of blocking the admission of pupils and not giving some children the option of going to St Anne's.

The plans were put to a committee in April, which was split, and the final decision was left in the hands of the independent adjudicator.

Adjudicator Peter Neafsey concluded St Anne's to be a good school, which played an important part in the lives and education of its pupils.

However, he was not convinced it could continue to be viable, educationally or financially, in the years ahead.

Peter Weston, director of pupil and family services at the county council, said by the time the secondary school closed, all the current secondary schoolchildren would have left.

He said the primary school children would go to other special schools or special needs units in mainstream schools.

Parents argued mainstream schools could not always provide for their children's needs and feared their education would suffer.

Mrs Ingold is preparing to break the news to pupils and parents today - the school's sports day.