Worthing's Seafront Fayre, which attracts thousands of visitors, looks set to be axed unless council leaders come to the rescue.

The Worthing Seafront Festival Trust has decided to wind up its responsibility for the town's largest event over fears it has become too big for the four unpaid directors to cope with.

They are now negotiating with Worthing Borough Council in a bid to find a solution but are not holding out much hope.

Jonathan Chowen, trust chairman, said: "We made a decision on Tuesday at our meeting to wind up the company and trust that organises the Seafront Fayre. The final decision will be made on December 23.

"If it is all agreed then it will be scrapped. We have been in negotiations with the borough council for support because to organise the Seafront Fayre has become too large and complicated for us.

"The changing climate, with greater regulations and problems with obtaining insurance we need greater resources so we can operate it successfully.

"But we are not hopeful the negotiations will come to anything so at the moment we are going through the motions of winding it up."

The Fayre, which takes place over a weekend in July, has been going for 21 years.

Worthing Seafront Festival Trust Ltd took over responsibility for the fayre from the borough council in 1992. The three other directors are Denise Nowell, Roger Purr and Paul Morgan.

Mr Chowen, who has been involved with the event since it began, believes scrapping it will be a great loss to the town.

He said: "It will be bad for Worthing because every other town in Sussex, with the support of their local authorities, does something.

"In the 21 years it has been running it has only rained once. It has become a unique weekend.

" It will be a real waste to lose it and once it is gone it will be difficult to get back as some other town will take that weekend over and all the visitors who would have come to Worthing will go there.

"I am very disappointed about this but we feel we have not got much choice. It is just too much for four directors, who are all voluntary, to deal with.

"The chances of something going wrong have increased because of its size.

"We looked at what happened in Brighton with the Fatboy Slim party on the beach and saw how that could have been a terrible disaster and realised although the Fayre is not as big there is so much risk.

"We have had no help from the borough council and we need it in order to continue. If they are not willing to do so, then it will end."

Councillors said they were determined to save the Fayre.

Council leader Sheila Player said: "The Seafront Festival Ltd directors say they wanted a councillor or officer to act as company secretary but local government law prevents that from happening.

"They wanted us to underwrite liability for the event and we could not do that.

"It would be like writing a blank cheque.

"What the council already does is support the fair to the tune of £36,000 which we would have got from renting out the spots in the market and the like."

She added the council was waiting for the company's decision next month but were already making contingency plans to hold a fair using the £36,000 from renting out sites along the promenade.

Liberal Democrat councillor Janet Goldsbrough-Jones said: "People come from miles to enjoy it. It is a very popular event.

"We, as Lib Dems are determined that this fair will carry on."

If a final decision is made to scrap the Fayre surplus funds from the company will be handed out to charities.