A struggling West Sussex hospital may have escaped closure but there is no guarantee it will continue to treat NHS patients.

King Edward VII Hospital in Midhurst is set to get up to £900,000 worth of NHS support to keep it running for another two months while negotiations continue with prospective buyers.

The extra time could allow the sale of the hospital to be completed but the new owners may choose to admit only private patients.

Dr Alan Hayes, the chairman of the action group which campaigned to keep the hospital open, said it was unlikely a new owner would not want NHS patients because of the substantial income they create and the fact such a move would lose local support.

Dr Hayes said: "King Edward VII could not exist if it did not get income from NHS. When the volume of NHS patients went down, we ran into difficulties.

"From what the liquidator said, the potential purchasers have expressed the view they would like to keep the NHS business. That's a desire shared by all of us.

"I cannot give any guarantee that's what will happen. The liquidator will ensure money goes back to creditors and the sale will be in good faith. What the new owners do to it after that is up to them.

"To enjoy the support from the local community, you have to keep treating NHS patients.

"I wish the hospital was not in a position where it had to be sold to remain in existence.

"For 100 years, it has been a model of a foundation hospital and not run to amass a profit.

"It has a philosophy that you treat both NHS and private patients equally.

"Luckily the provisional liquidator has shown himself to be a very sensitive person who has tried to have King Edward VII continue as a hospital rather than just sell it for a chicken farm.

"The staff want to continue treating NHS patients because they feel part of the community."

Thrilled with the reprieve, nurse Karen Williams said: "Staff have been under a lot of pressure but we have managed to maintain our professional attitude.

"This whole thing has been quite nice in the way it has brought us together as a team. We like working here because we have both private and NHS patients."

Provisional liquidator Shay Bannon said the extra two months should be sufficient to secure a sale.