The fate of a West Sussex hospital - and hundreds of jobs - is expected to be revealed in the next two weeks.

John Prescott's office is deciding whether it wants to call in a decision to allow a major redevelopment of King Edward VII Hospital in Midhurst.

If the decision is called in then the private hospital will have to close.

The hospital went into provisional liquidation almost a year ago after running up debts of millions.

Liquidators say the only way to save it is to convert the main building into flats, build a further 100 homes on the site and build another hospital in the grounds.

Environmentalists have attacked the plans saying they would have a devastating impact on the site, which is in an area of outstanding natural beauty.

The site is also earmarked to form part of the proposed South Downs national park.

But tens of thousands of campaigners say the hospital provides vital support to NHS hospitals by helping cut waiting lists.

If it closes, patients from West Sussex, Hampshire and parts of Surrey will have to wait longer for treatment.

Chichester District Council approved the plans at a meeting earlier this month.

If the plans are called in by the Government, it could take up to two years for a decision to be made and liquidators say the hospital cannot survive in its present form for that length of time.