A centre for the elderly threatened with bed closures will be renovated and modernised instead.

Thousands of people signed a petition calling on councillors not to close beds and demonstrated outside last week's meeting of Brighton and Hove City Council.

Now, to the delight of campaigners, new proposals to revamp Knoll House in Ingram Crescent, Hove, are expected to be approved by the policy committee on Wednesday.

The council consulted people about the future of residential services at Knoll House after hearing it would cost £2 million to bring the home up to standard.

Suggestions included moving the residents elsewhere or getting another organisation to run the service.

There was strong opposition to the changes and, at the last full council meeting, local Labour councillor Pat Murphy presented a petition signed by 3,350 people.

Social care Cabinet member Jean Spray said the consultation had been thorough and painstaking, although many people had been sceptical about it.

She added: "We have listened very carefully to everyone. It is a golden opportunity to work towards a resources centre for elderly people that will carry us forward for the next ten to 20 years."

The council will now ask the Government if Knoll House can be temporarily exempt from new regulations on old people's centres so that it can continue to provide a service.

Coun Spray said: "I have also asked for the precise improvements required and how much time we will have to introduce them."

She visited Knoll House, talking to residents and staff, and said she realised the valuable contribution it played in the community.

She said: "I want to make it clear I expect this role to continue and to be enhanced."

Coun Spray said the council had to face the same problems as many other organisations dealing with the elderly who have to bring homes up to required standards.

The council is concerned at the number of care homes closed over the last few years which has led to bed blocking in hospitals.

Coun Spray said the council enjoyed good relations with the private and voluntary sectors.

She added: "We have a shared concern to make sure the quality of care we provide is of the highest standard.

"That is why we are exploring with our colleagues in the NHS, housing associations and our own housing professionals, ways and means to bring services together to provide a truly modern resource centre for older people."

Coun Murphy said he welcomed the decision which had been made partly because of public feeling about Knoll House and partly to ease bed blocking.

He said: "It would have been wrong to have closed the beds or to have brought in the private sector.

"In future we must sit down and discuss things openly with all those concerned, including the unions. If you do things behind closed doors, they can blow up in your face.

"This is outstanding news. The home is secure and services will be enhanced. It shows if you have a well-organised campaign with local unions and councillors you can succeed.

"This should send a signal to other trades unions and councils that you can retain good quality public services if you are prepared to struggle."

Liberal Democrat group leader Paul Elgood welcomed the news but said the council must still listen to the community and users of the centre before making a final decision.

Knoll House was built in the Seventies. It also includes a day centre which the council will continue to operate.