A group of parents said to be "suicidal" today dramatically won their fight to save a care centre they say has been crucial in their struggle to care for autistic children.

The parents - who were reported to be on the verge of breakdown because of their drawn-out legal battle - hugged members of their legal team at London's High Court as they heard they had succeeded in saving the Palmeira Project in Hove from closure.

In a move rarely seen in a court before, local council leaders acting under delegated powers decided in the courtroom to keep the project running until the five children presently attending had reached adulthood or left school - unless "very good reasons" came up for not doing so.

Brighton and Hove Council's surprise move followed a recent ruling by Mr Justice Hooper that the authority should reconsider an earlier decision to withdraw public funding from the project.

The judge said last October that the council was under a legal duty to ensure the children were properly cared for and should take a fresh look at its decision.

The case returned to court because the council decided in November to defer a final ruling on whether to continue funding the project while further assessments were carried out. The matter was due to be reconsidered in February.

The delay angered the parents and today their lawyers asked Mr Justice Hooper to order the council to end the uncertainty and reach a quick decision.

Their lawyers commissioned an independent psychiatric social worker's report which concluded that uncertainty over the future of the project was causing untold harm to all the families and the possibility of a suicide was "not unlikely".

In court, the judge adjourned the hearing so that both sides could talk.

James Goudie QC, appearing for the council, then announced it was willing immediately to adopt an option to fund the project until the children reached adulthood, if no "very good reasons" arose to the contrary.

The judge welcomed "the bringing of this unhappy saga to what I think is a successful conclusion."

Outside court Nicola Mackintosh, solicitor for the parents - who cannot be identified for legal reasons - said: "It is a fantastic result. We didn't imagine there would be a final decision today.

"The judge has forced the council to make a complete U-turn and accept its legal responsibilities to disabled children.

"The children are happy and settled at Palmeira. It give them and their parents a tiny taste of what normal life can be."

Palmeira was opened in July 1998 with the aim of providing round-the-clock care for autistic children, who are hard to control and often have no sense of danger.

The children spend part of the week at home with their families and the rest at Palmeira.

But the project, run under contract by the charity NCH action for children, encountered financial difficulties and was in danger of being closed when the council decided to halt funding last June.

Today's decision was made so rapidly because several of Brighton and Hove Council's leaders and senior officials were in court and were authorised to act.

Council leader Lynette Gwyn-Jones said later: "I am very glad that the litigation now appears to be finished and both professionals and politicians can concentrate on our responsibilities to provide services."