The creation of a South Downs national park has moved a step closer this week after two years of delays.

The Department for Environment Food and Rural Affairs has revealed it is to reopen the file after a lengthy legal battle involving the New Forest National Park came to end.

The new protected zone will cover swathes of Sussex and Hampshire and the inital plans could be extending by a further 25 sq km in Arun, Adur, Chichester, Horsham, Lewes, Mid Sussex, Wealden, Eastbourne and Worthing.

Proposals to redraw the northern boundary between Petersfield, Hampshire, and Pulborough are also being considered.

On July 2, Defra will release the conclusion from the public inquiry, which finished in 2004, and a report into new laws governing national parks.

Comments on changes to the boundaries and the impact of the legal challenge will then be gathered and the Secretary of State, David Miliband, will decide whether to open another public inquiry or press on with the plans.

The report has been held until now as a landowner in Hampshire challenged the boundary of the New Forest National Park.

The judge concluded that land shaped by man could not be included and removed the estate from the protected area.

But Defra appealed against the ruling and the High Court's decision not to overturn the judgment came only in February 2007.

Concerns the Meyrick ruling could lead to swathes of the South Downs National Park being cut out were appeased after the Government used the Natural England and Rural Communities Bill to clarify that natural beauty can apply to land shaped by man.

Chris Todd, of the South Downs Campaign, said Defra's decision to consult on changes to boundaries indicated that the inspector had found in favour of a national park in principal.

He said: "We are pleased things are back on track and it is clear the inspector must have recommended in favour of a South Downs National Park and that extra areas should be included.

"There is a suggestion that large chunk of the Lower Weald should be excluded and we are worried that the land could be left completely unprotected.

"It is good the Secretary of State has offered us an opportunity to consult because if he decides not to include land he doesn't have to come back to the public before making the decision.

"We need the national park because it will create a permanent, independent body which is better funded and has more powers to protect the South Downs for future generation."

A spokesman for the South Downs Joint Committee, which currently run the area, said: "After a long delay we welcome progress on resolving the future designation of the South Downs"