Campaigners fighting to save the King Edward VII Hospital in Midhurst from closure will learn within two weeks if it is to have any future.

Planners have earmarked November 5 as the date on which to decide whether to approve a project to revitalise the hospital.

The scheme includes converting the main site into flats, building a replacement hospital and creating more than 100 homes to the north.

Chichester District Council will discuss referring the scheme either to a special meeting of the planning applications referral committee or the full council.

But the chances of the hospital surviving would remain in doubt even if the application is given the go-ahead.

The decision is expected to be called in by Secretary of State John Prescott because the site is in an area of outstanding natural beauty and earmarked to form part of the proposed South Downs national park.

If this happens, the private hospital is likely to close, threatening 300 jobs.

Liquidators called in a year ago, after the hospital plunged into millions of pounds of debt, say they will not be able to keep it going while the application is being investigated.

A consortium made up of developers and private healthcare company Capio drew up the plans, which it claims would secure the hospital's future.

The blueprint includes a 400-space car park, health club and neurological unit.

But the Sussex Downs Conservation Board has said the plans would cause too much environmental damage.