A secret sex discrimination row could cost taxpayers more than £1 million.

Rumours are rife in Worthing Town Hall of an expensive out-of-court agreement being brokered to avoid potentially embarrassing revelations coming out at a tribunal.

Leading figures in the row either refused to comment or denied knowledge of any such discussions.

Sheryl Grady, chief executive of Worthing Borough Council, has been on sick leave since December.

She has accused the council, and its leader, Sheila Player, of sexual discrimination.

A five-day hearing has been scheduled to start at Brighton Industrial Tribunal on June 14.

All members of the council have been sworn to silence until then.

But Tory councillor George Stephens has broken rank and demanded to know whether behind-the-scenes talks are being held.

Coun Stephens hinted at the possibility of a settlement at a council meeting but was prevented from asking an open question.

The meeting broke up for ten minutes while town hall legal adviser Bill Johnson discussed the matter with Coun Stephens and other councillors.

Coun Stephens was then advised to submit in writing his question, on "alleged offers of a settlement", so it was not aired in public.

But after the meeting, he said: "There are rumours flying around of a £1.2 to £1.4 million settlement. I want to know who took the decision to make this offer, if, indeed, such an offer has been made.

"This should be in the public domain."

David Siegler, Miss Grady's husband, and an outspoken critic of the council's alleged treatment of his wife, said: "I cannot comment about that."

Miss Player, who has vowed to vigorously defend her position at the tribunal, said she had no idea if an offer had been made, adding: "There are obviously things I don't know and quite rightly so."

She said only the four councillors serving on a special personnel committee examining the Grady affair were in a position to know.

Coun Keith Mercer, leader of the Tory opposition, said: "My experience is if you have a case like this you always try to find out informally through the plaintiff's solicitors whether they would agree to a settlement.

"I think it is probably normal in these situations. I would expect that to happen but I don't know for certain that it has happened."

Earlier, Councillor Tom Wye called on the council to reveal how much the investigation had so far cost taxpayers.

Coun John Lovell, who sits on the personnel committee, refused to reveal the sum but said the committee would reconsider its decision to keep the total a secret.