Brighton and Hove could lose out on becoming a city to a town in Wales.

It is understood Cabinet Ministers are wrangling over how many towns should receive city status in England, Scotland and Wales.

The current proposal being discussed is for two English towns and a Scottish town to be chosen for the honour of receiving city status from the Queen.

But Welsh Secretary Paul Murphy is upset none of the bids from the six towns in Wales which applied are being considered.

If he gets his way, one city from England, Scotland and Wales could receive city status, diminishing Brighton and Hove's chances of success.

Yesterday, Simon Fanshawe, city bid chairman, said the Cabinet discussions did not bother him.

He said winning the city bid was never the ultimate aim of the campaign. Instead, he said it was used to launch a year of celebrations and a chance to forge plans for the future of Brighton and Hove.

He said: "While it would be great to receive city status, that is not the be-all and end-all.

"It is about so much more, like quality of life, strengthening the economy, raising community funds and making plans for a creative industry. What we have put in place is way beyond formal recognition through achieving city status."

In 1998, the Queen announced she would grant city status to a town in 2000 to mark the millennium and another one in 2002 to commemorate the 50th anniversary of her coronation.

Wolverhampton and Brighton and Hove have always been perceived as the strongest English candidates with Swindon having an outside chance.

A leaked document we published exclusively in March revealed Brighton and Hove was in second place behind Wolverhampton.

The Cabinet discussions could further delay the announcement of which town will be promoted to a city to mark the millennium.

But yesterday, Mike O'Brien, the Home Office minister in charge of the selection process, said the winner would be known by the end of the year - within six weeks - as originally planned.

A spokesman for Brighton and Hove Council said: "It is encouraging we are still mentioned as one of the top three towns in England. We will just have to sit tight and wait and see."