A controversial plan to build hundreds of flats to pay for replacing or renovating a crumbling sports centre has "no viable alternative", councillors have decided.

Brighton and Hove City Council believes a new £22 million public sports centre should be built at the King Alfred seafront site in Hove.

It has accepted independent advice that new homes are the most likely way to raise the money.

The scale of the plan has sparked anger among many residents.

But a new report requested by King Alfred task group chairman Councillor Mike Middleton shows all other financial avenues have been explored and exhausted.

It says, at best, between £3 million and £4 million could be raised from the council's own capital programme, the Sports Lottery and a contribution from a private sector management partner to equip the centre.

The report also rules out residents' bonds because people would get no return. No money from the Single Regeneration Budget or European funds would be available and the project would be unlikely to fit a private finance initiative.

The council asked its advisers to look again at the minimum number of flats needed for a new centre, originally estimated at 400.

They said that given £1 million contributions each from the council, the lottery and a private sector management partner, the number of flats might be reduced to about 300.

Coun Middleton said: "Because of the concerns people have raised, we've done extensive work on the funding options. All but the flats development have turned out to be red herrings."

The authority will also consult on a partial rebuild or a refurbishment of the existing centre, which would require fewer flats.

But it favours a complete rebuild as this would mean up-to-date sports facilities plus new housing.

A report on the options is on the council website at www.brighton-hove.gov.uk