It is hoped the move will make some improvements to problems identified in the Bull report.

The report by Kathie Bull, from the UK's Office for Standards in Education (Ofsted), identified what she claimed were serious shortcomings in the way children with severe emotional and behavioural difficulties (EBD) were looked after in the island.

The Health and Social Services Department has been looking at ways to make improvements, and is hoping enough money can be found for the fostering scheme.

Stretched budget

It would involve children with EBD being cared for by professional, trained foster parents.

It is thought the plan could cost about �400,000 to set up, which would have to be approved by the Health Committee, which already has a stretched budget.

But adoption managers say the money could be saved in the long term as the need for residential care would fall.

Adoption manager Tony Le Sueur, said: "The budget is overstretched, and it has been for some time.

"Either the island faces the prospect of opening more residential units which is not a solution, or it invests in fostering.

"Fostering is the unknown if you like. We haven't tested it fully and before we go down the road of developing residential services, we believe we need to look at the fostering option."