A flood wall to protect thousands of homes might never be built, the Environment Agency has admitted.

Householders in Uckfield have campaigned for defences since the town was inundated in October 2000.

A proposal to build a wall around the Somerfield car park in River Way is the only help they have yet been offered.

However, Andrew Gilham, the agency's Sussex Area Flood Manager, admitted this week that negotiations with Somerfield, which started in December, had reached a standstill.

Mr Gilham said: "There is no movement at the moment.

We are still trying to find a solution with Somerfield.

There is a possibility that the wall may not go ahead."

The plan has faltered because the supermarket wants more in compensation than the £600,000 cost of the wall. Somerfield said it wanted an extra amount to make up for the business it would lose during and after the wall's construction.

The supermarket itself was among hundreds of homes and businesses damaged by flood water when the River Uck burst its banks amid torrential rain in October 2000.

Residents have campaigned for defences to be built ever since. They have regularly expressed their anger at the Government and at Environment Minister Elliot Morley, who they claim promised he would do everything he could to help them.

The residents have also criticised the Environment Agency, which took five years to come up with the flood wall proposal.

Uckfield Town Council has arranged a meeting with the Environment Agency to discuss the situation and has invited representatives from South East Water, Wealden District Council, East Sussex County Council and campaign groups such as the Uck Valley Flood Forum, led by Councillor Claire Dowling.

Town clerk Ashley Serpis said: "We have to consider the possibility that the wall will not go ahead and consider what other options we have.

"There is no use moaning any more about how we have been hard done by. We have to concentrate on what will help in future."

Mr Serpis said it was unrealistic to expect an alternative plan - to raise £3.8 million to create a reservoir further up the River Uck - to come to fruition.

Uckfield's mayor Louise Eastwood called for residents and campaigners to concentrate on what can now be done.

Councillor Eastwood said: "The council wants everyone at the meeting to focus on the future and not on the promises made six years ago.

Hopefully, all interested parties can find common ground and work together for the benefit of all concerned, to meet the challenge that flooding brings."

The private meeting will be at Uckfield Civic Centre on November 9.

Mary Dhonau, co-ordinator of the National Flood Forum, will advise the town council on ways it can tackle the risk of flooding.