Hazel Watts was diagnosed with cancer in 1992

Hazel Watts, 66, of Budleigh Salterton, was told that a new drug Nexavar could extend her life by up to two years.

But Devon Primary Care Trust (PCT) said initially that it would not be appropriate for Mrs Watts.

An appeal panel has now agreed to fund her treatment, at a cost of �2,000 a month on the basis of "exceptional and unusual clinical need".

Not approved

Mrs Watts' daughter Lisa Chambers said: "My mother's health had been declining rapidly so the whole family is delighted with the decision."

They hope that Nexavar will prolong Mrs Watts' life after she was given just months to live.

Mrs Watts, who had been taking interferon and painkillers, was told by the PCT earlier this year that Nexavar had not been approved by the government's drugs watchdog, NICE.

The PCT took advice from the Scottish Medicines Consortium, which advises the NHS in Scotland, and it said it did not recommend using Nexavar where other drugs such as interferon had failed.

The PCT said it was therefore not appropriate for Mrs Watts.

Derek Hathaway, chair of the appeals panel, said on Wednesday: "The panel was presented with additional clinical evidence from Mrs Watts's consultant.