The £2 million sale of a famous golf course came close to falling through at the last minute.

A confidential council report shows the purchaser threatened to pull out at the 11th hour, sparking frantic scenes at Worthing Town Hall.

A source revealed the borough council dropped its asking price by £70,000 in a bid to ensure the sale of Hill Barn Golf Course went ahead.

But the source said the council had already agreed a price of £2,075,000 before the cut.

He added: "They (the council) agreed to relax vital guarantees which would safeguard Hill Barn's future for generations to come."

The report, by Simon Aley, the council's head of legal services, stated: "The negotiations for the sale of Hill Barn Golf Course have progressed and contracts were prepared for signature.

"At the last minute the purchaser raised concerns about personal guarantees and the fact they were in perpetuity.

"The covenants contained in the transfer cover a range of issues including paying 75 per cent of the maintenance of Hill Barn Lane, maintaining the use of the land as a public pay and play golf course . . . and not to sell on the land without procuring fresh positive covenants from the new owner."

According to the report, the prospective purchaser, Richard Haygarth, proprietor of Chichester Golf Club, feared the personal guarantees could hinder any future disposal of the land.

His bankers refused to lend him money to help purchase the course if the guarantees were demanded.

Mr Aley said this sticking point could wreck the deal, adding: "If the council is not prepared to drop its requirement for personal guarantees, then the purchaser will not get his loan and the sale will not proceed.

"Clearly, because of the closeness of completion, it is essential that this is treated as urgent. It is almost certain that the deal will collapse if this is not."

In a letter to Sheryl Grady, chief executive of Worthing Borough Council, Mr Haygarth wrote: "I have been working tirelessly towards finalising the purchase and to date have spent over one thousand hours and approximately £25,000 on professional fees to this end.

"As a result of the nature of the council being a public body, the negotiations have been protracted and the timescale for finalising a transaction has been pushed out."

He said he had made concessions and been given a £70,000 price reduction by the council, but warned that if contracts were not exchanged within the week his offer would be withdrawn.

Councillors subsequently met in secret and agreed to the sale, which boosted town hall coffers by £2 million.