A gay priest who is going to work dressed as a woman has defied Church leaders by refusing to give up her job.

Christina Beardsley, 49, formerly known as Christopher, is conducting her chaplain's duties at Southlands Hospital, Shoreham, as a woman priest.

The Bishop of Chichester, the Rt Rev John Hind, wants her to give up her licence to practice but Christina has no plans to abandon the post.

She said: "It is still early days for me but I do feel more complete as a person. It has been a long haul but I realise I am only at the beginning of the next stage in my life.

"I can't say there has been any conflict between my religious convictions and my gender journey. My faith in a loving God has supported me throughout my life and no less so in this situation.

"I feel so much better now I have informed lots of people. I already had a more feminine way of working and there wasn't much shock."

Christina, who lives in Shoreham with her male lover of 28 years, has been taking hormone treatment for more than a year. She is now in a period of "transition" which may culminate in a sex-change operation in about two years' time.

Following her first day at work as a woman, she said: "The day went very well. I was already perceived as female by some patients and relatives. Most of the reactions were from people who said 'You look very nice today'."

Christina is supported by management at the hospital where she has worked for more than a year but not by Church leaders. Bishop Hind said he would have "concerns" for Christina, patients and staff at the hospital if she continued to work as a woman. But the diocese has no power to force her to give up her licence as she is employed by Worthing and Southlands Hospital NHS Trust.

The Bishop said: "The priest in question has recently continued with gender re-assignation. I hope first of all everyone will respect the huge personal anguish which must have led to this decision and refrain from intrusive inquiry and speculation.

"I repeat my concern both for the person most directly involved and for the staff, patients and their families and all engaged in the administration of the hospital."

Bishop Hind said he had discussed the matter with the Bishop of Horsham, the Right Rev Lindsay Urwin, who was responsible for the diocese during vacancy-in-see.

He said: "Having taken appropriate legal action and other advice and after meetings to listen to and speak with the chaplain, the Bishop of Horsham informed me after much thought he considered it would be most appropriate for the licence to be voluntarily relinquished. I agree with that position.

"The priest concerned has decided not to relinquish her licence. The chaplain continues to hold a licence as chaplain of Southlands Hospital. It does not give any permission to officiate elsewhere within the diocese apart from the chaplaincy for which the licence was granted.

"This is without prejudice to the wider theological, moral and legal questions involved."

Christina, who studied at Sussex University and Cambridge, started work at Southlands a year ago after leaving her former church in Portsmouth.

She has spent the last seven months planning for the day she would turn up for work as a woman.

Christina conducts her ward visits and twice-weekly services dressed as a woman priest. Other duties include taking Communion to patients and pastoral care of staff.

During counselling lasting two-and-a-half years, she questioned whether she could continue in her ministry and as a woman.

She said: "The answer was clearly yes.

"I am glad I have been able to hold together both my work as a priest and my identity as a female."

Pam Lelliott, spokeswoman for the Southlands Hospital, said: "Everyone who works with and knows Christina understands the situation and accepts that she will continue in her job, which she does very well.

"We respect her privacy and will, as her employer, do all we can to support her."

Since October Christina has run the Hove-based Clare Project which offers comfort and support for transsexuals from others who are at various stages leading to a sex-change operation.

Services for members, aged from their early twenties to sixties, include group therapy sessions, clothes shopping trips and make-up demonstrations.

Christina said: "It is a safe and discreet place for people who need support.

"Society is becoming more tolerant, particularly in places like Brighton and Hove. However transsexual people are still in need of help because they are vulnerable and isolated."