Newhaven port is in line to be taken over by the French in a multi-million pound deal.

The Seine Maritime region of northern France has confirmed plans to take control of the port and restore freight ferry services.

An agreement has been signed by the conseil-general of the region and port owner Sea Containers.

Seine Maritime plans to reinstate freight ferry services by March.

The Newhaven-Dieppe route is currently served seasonally by a rapid catamaran run by Hoverspeed.

Ferry firm P&O scrapped its crossings in January 1999, costing hundreds of jobs on both sides of the channel.

In a statement from Seine Maritime and Sea Containers, officials said the deal was "still at an early stage with much legal work still to do".

But optimism is running high in Newhaven following the news.

East Sussex County Council leader David Rogers said he believed the whole town would welcome the move.

He said: "If this deal is finalised it will be wonderful for the port and trade in Newhaven."

It is thought the new service could create hundreds of jobs in the area and re-establish Newhaven as a gateway to Europe.