There is a remarkable beauty and a sense of a bygone age about the village of Falmer.

There is the pond at the centre of the green, the Church of St Laurence, the flint buildings, a homely local pub and friendly farm shop.

Villagers and visitors can enjoy the tranquillity and stillness of the open fields, leafy lanes and quaint terraces.

But Falmer is a village that has been at war with the outside world for the past five years, in a struggle for its very survival.

The proposal to build a community football stadium for Brighton and Hove Albion on the edge of the village has sparked a clash between two Englands.

The residents - young families, university staff and pensioners who have lived there all their lives - want to preserve the old.

An army of football fans, avid supporters of the national team during Euro 2004, want to usher in a brave new world.

This divide is indicative of a struggle taking place across the country between those who want to conserve our green and pleasant land and those who want to build for the future.

The same dilemma is facing planners presiding over proposals for every home, every new building.

But this time the stakes are so much higher.

Now the highest planning authority in the land, Deputy Prime Minister John Prescott continues to wring his hands rather than commit to a final decision.

Falmer has suffered at the hands of a modernising Britain before.

The expansion of the road network came dangerously close.

The A23 diversion, completed in 1981, slices through the village, cutting those who enjoy a pint at the Swan pub in the north from those walking around the picturesque pond to the south.

A concrete footbridge straddles the road as an uncomfortable concession.

The huge growth of higher education since the red-brick revolution of the Sixties - of which Sussex University is one of the finest examples - has also been felt.

The campus to the north-west dominates the landscape so much so the word Falmer is now, for many people, synonymous with academia.

The battle to oppose the planning application, from the public inquiry to the agonising wait for Mr Prescott's decision, has itself changed the character of the village - and the people who live there.

Residents have complained of sleepless nights and growing anxiety alongside a sense of isolation.

Some may argue they are clutching at the last straw but yesterday's stay of execution is seen by many as a landmark victory.

Hilda Saunter, 79, a retired foster mother living in Park Street, has been in the village all her life.

She said: "Whatever decision comes out of this new inquiry we will have to accept but it does give us optimism.

"I am desperately hoping this means Falmer can be saved but we cannot be sure. How can we be sure of anything in this day and age?

"The stadium would just tear the village to bits. It has already been completely ruined.

"I was born in Falmer and have lived here all my life. We have seen the road go through, the university build the campus and now this.

"We just feel we don't exist as a village at all. Every house that is up for sale the university buys or puts its people in. We are ending up as a suburb.

"I'm an old person now and it's not going to affect me for too many years. But my children and grandchildren absolutely love this village but it's all going to disappear.

"To the outside it looks like we're spoilsports and that's sad because it's not like that at all.

"They need to find a place for the stadium which would make everybody happy."

Pete Lenihan, 48, is a tenant farmer renting the fields earmarked for the stadium from Brighton and Hove City Council.

Since the proposal he says he has "turned grey" with worry, his eldest child Rebecca has left for university and his livelihood has been left hanging in the balance.

If Mr Prescott rules in favour of Falmer, the farm would almost certainly close and his Park Farm Shop would also be in jeopardy.

The father-of-three said: "We are having to put up with further doubt but we do feel the day has been won and Falmer is not an option any more.

"Everything in the report vindicated what we in Falmer have been saying about the stadium. The planning inspector has come out so hard against it we feel it cannot be resurrected again.

"The politics of this have come out. If all the Brighton and Hove seats were safe, they would have told the club to go away again.

"But there are three Labour MPs who would be out of a job if Falmer was refused.

"As a farmer, I have not been able to plan with any surety. We have to plan ahead - crop rotation does not happen overnight.

"Having this hanging over our heads and not knowing if we will be here in ten years has been difficult.

"We've spent a lot of money just to defend this village for the county - for the country."

Melanie Cutress, whose husband Tim is managing director of Sussex bakers Forfars, lives in South Street.

She has perfect views over the village pond, which she hopes will be preserved for future generations in light of the latest decision.

The mother-of-three is a member of the parish council and has been involved in the campaign from the beginning.

She said: "We cannot say for sure the village has been saved but we have won round one.

"Prescott has turned down Falmer - that is the position at the moment. We don't know what the future holds but this is great for us.

"The whole village has been opposed to the stadium. This has been going on since 1999 and we've fought it and opposed it vigorously.

"I've lived here 20 years. You think it's going to stay the same forever. You expect the odd house to be built next door but never a football stadium.

"The campaign has taken up a huge amount of time and has been like a full-time job but we are now much more optimistic."

Computer analyst Simon Barnes is one of the many University of Sussex staff who have moved into the village and become part of its community.

Mr Barnes, 53, lives in Mill Street with his wife. His two grown-up children have left home.

He said: "This will be another year of uncertainty. But there were champagne corks popping yesterday and people in Falmer are very pleased.

"From what people have been saying, it seems it will be very hard for the club to get Falmer through now.

"John Prescott could not go against two planning inspectors so he has fudged it and called for a new inquiry that will not be complete until after the next election.

"He is worried about the Labour MPs in Brighton and Hove so he could not reject Falmer but if he passed it there would be a judicial review.

"We feel this is a moral victory because we have won the planning inquiry. The inspector's report is pretty strong against Falmer."

The collective sigh of relief comes after a huge amount of stress and anxiety among the families of Falmer.

Mr Barnes said: "My wife and I found it difficult to sleep because of the stadium proposal. A lot of people said it gave them sleepless nights.

"People felt this was a weight on them because it has been such a long time. We also felt under siege and isolated.

"This has split us from the city - in particular there is quite a lot of ill-feeling because the fans seem to think it's all our fault this went to a public inquiry in the first place.

"The village is still idyllic but the thought of taking that away has had an impact on the people living here.

"They have felt bullied by Brighton and Hove City Council - in the referendum we were not allowed to vote.

"We felt they may have selected Falmer because it's a very small village and they thought it would be no trouble."

Michele Nocentini, 38, is a mother of two who runs a property business and lives in Park Street.

She said: "There are some very dedicated and caring people who were committed to the campaign for a long time.

"The quality of life here is special enough not to want to sell up and leave if the stadium does finally go ahead.

"But it would change the character of the village and the whole aura would be destroyed.

"People need to have some peace but the stadium would interfere with that. If we keep filling in spaces like this, where will the lungs of the city be? Where will people go to escape for a moment?

"If Falmer can be saved, it will show something of value can be protected from the relentless pace of the new world. It would preserve something small and beautiful rather than favour the big and money-wielding."

The five-year planning process has provoked anger and upset among homeowners in the village.

But it has also inspired another quintessential English quality - what in more troubled times would be known as the Dunkirk spirit.

Already close-knit, the residents of Falmer have been drawn together in their fight against the stadium.

The very thing that threatens to tear this community apart has brought it closer together.