The South West Regional Development Agency (RDA) has announced it will carry out a feasibility study into proposals to sink HMS Scylla in Whitsand Bay.

A project coordinator and a consultant have been appointed to carry out a study into the potential benefits of the project, proposed by the Artificial Reef Consortium.

HMS Scylla is an exciting project which could make a huge impact on Plymouth's wider economy Alan Berry

A similar scheme off the coast of New Zealand, where HMNZS Waikato was sunk, led to a large increase in tourist figures.

The cost of the venture has been estimated at around �100,000 and the feasibility study will determine whether or not Plymouth should pursue its bid.

"HMS Scylla is an exciting project which could make a huge impact on Plymouth's wider economy," said Alan Berry from the RDA.

Whitsand Bay could become a diving mecca

"With a project of this scale it is vital that we get it right.

"The feasibility study will determine whether or not this idea, which has been successful in other countries, will work for Plymouth."

The Plymouth-built warship is currently based at Portsmouth and is due to be auctioned in June.