Newhaven Port was last night sold to the French in a £15 million deal.

The East Quay, adjacent land and buildings and outer harbour have finally been sold to a French consortium by Sea Containers following months of wrangling between the two sides.

James Sherwood, president of Sea Containers, signed the agreement on behalf of subsidiary Ferry and Port Holdings with Charles Revet, of the French county council of Seine Maritime.

The Seine Maritime is heading Transmanche, a French public organisation which is buying the port and this week launched a conventional ferry service between Newhaven and Dieppe.

The French have given themselves a three-year deadline to make the port break even.

They plan to invest millions to make the harbour more competitive, both as a passenger and freight centre, including work to improve the access road, deepen the port entrance and improve tourism on both sides of the Channel.

It has emerged the deal bans the French from carrying passengers on their all-year conventional ferry, the Sardinia Vera, during the summer when Sea Containers-owned Hoverspeed runs its seasonal fast service.

The Sardinia Vera will carry only freight, buses and caravans during the summer and passengers in the winter when the Hoverspeed service stops.

Sea Containers wanted to protect its business on its summer route.

A Sea Containers spokesman said: "Mr Revet said these agreements would restore the Newhaven/Dieppe route to the prominence held before P&O Stena abandoned its service in 1998.

"Transmanche has chartered the MV Sardinia Vera to start a new conventional ferry service on the route, concentrating on freight and bus traffic and other classes of traffic in winter when Hoverspeed's fast ferry is not operating. He promised the ferry port would be progressively improved under Transmanche ownership.

"Mr Sherwood said that Hoverspeed looked forward to co-operation with Transmanche in developing the route and indicated that Ferry and Port Holdings would continue to improve the West Quay marina."

Hoverspeed will act as the agent for sales on the Sardinia Vera and has signed an access agreement with Transmanche for entry into the port.

A Hoverspeed spokesman said it would be able to generate coach business for the Sardinia Vera.

Hoverspeed has guaranteed to provide a minimum of 100,000 passengers on the Sardinia Vera during the winter.

Steve Buhlman, chairman of the Newhaven Economic Partnership, said: "We are delighted that the sale has gone through and look forward to working with our French neighbours and having a 365-day-a-year freight and passenger service.

"Newhaven is currently on the crest of a wave and the NEP will work with the new owners to maximise their investment and continue the regeneration of the town."