Sixty new flats for elderly people could be built using millions of pounds of Government funding.

Brighton and Hove City Council has been awarded £3.2 million to build more new homes and health services for older, vulnerable people.

The council is one of only five social services authorities to have received Department of Health funding this year. It wants to work with Hanover Housing to build more than 60 flats in the Queen's Park area.

The site proposed for redevelopment is a sheltered housing scheme. It currently provides 36 studio flats with shared bathrooms and requires substantial investment.

A three-month consultation will be carried out with residents to ensure their needs can be properly addressed.

Council leader and Queen's Park councillor Simon Burgess said: "This is very good news for the city and for Queen's Park but I appreciate the deep anxiety that people living within the sheltered housing scheme will be experiencing.

"I want to reassure them that officers, along with their ward councillors, will be working hard with them to make sure we put together individual housing relocation packages that meet their needs."

Green Party social services councillor Simon Williams said: "This is exciting news.

The project will help older people who want independence but require support in their living arrangements. But it must be handled sensitively and the council has a duty to consult carefully with the residents and with older people's groups.

"It is reassuring to note that residents will be offered accommodation in the new centre. We will be keeping a close watch to make sure consultation is undertaken to the highest standards."

The new funding comes to the city as the first extra care housing scheme nears completion. New Larchwood in Coldean is expected to be ready to receive tenants in its 38 self-contained flats later this year.

It is hoped it will provide a level of independence and privacy for residents, with the reassurance of 24-hour care and support should it be required.

Councillor Anne Meadows, chairwoman of the adult social care and health committee, said: "We know from the high level of interest shown in New Larchwood that many people see extra care housing as an opportunity to retain their independence as their care needs increase."