A threatened regeneration project in Newhaven could go ahead after developers and a council resolved a dispute over cash.

East Sussex County Council withdrew its threat to walk away from the multi-million pound scheme after private companies agreed to cover more of the authority's costs.

But the Eastside Business Park, in Newhaven, could still falter if regional development chiefs do not reschedule £682,000 for environmental work.

The council said in September it would pull out of the £25 million project unless the private companies likely to benefit came up with more cash.

Council leader Peter Jones said the deal meant the cost of the project to council tax payers had been reduced.

He said: "It's now a matter of making it happen. All the key players are in agreement and I am very pleased that the Newhaven Economic Partnership has agreed to take our proposals forward to Seeda."