A controversial scheme to open a new art gallery in Lewes has been resurrected.

Lewes Millennium Gallery Trust, whose bid to convert part of the town hall for a gallery sparked bitter recriminations, is on the verge of buying its own building.

The trust has signed an agreement to buy the Star Gallery in Castle Ditch Lane, Lewes.

Trustees say the site should be taken over before the end of the year, with the cost of buying and renovating it about £1 million.

Trustee Penny Brown said: "We have signed an agreement with the Star Gallery and are waiting for them to have a shareholders meeting. Hopefully all the legal stuff will be in place by the end of November."

Trust leaders raised thousands of pounds to open the town hall gallery, with the largest donation being £100,000.

The £1.5m plan, which collapsed two years ago, had been launched by then Mayor of Lewes Graham Mayhew.

The town council injected almost £33,000 before the scheme was scrapped, prompting an investigation by a local government watchdog.

The watchdog found no evidence of financial irregularities but said the council should have kept tighter control of the budget, had not properly explained the start-up costs to members and had not prepared a business plan.

The standards of administration had been less than could be expected of a public body.

The fall-out from the debacle led to Dr Mayhew being told by fellow councillors he was not wanted for a second year as mayor, just six days before the mayor-making ceremony. There was also a public vote of no confidence in the council.

The trust's new plan includes doubling the exhibition space at the Star.

The first phase of the renovation, costing about £140,000, would be to convert the cellars for educational use.