The canal restoration scheme could be complete in six years

British Waterways will take over the lease of a six-mile stretch.

It should mean it will be easier to obtain government funding for the restoration project as well as offering full public access.

Work starts in 2006 and is expected to take five years. When restored the canals will form a continuous waterway between the Severn and the Thames.

In March the restoration project was awarded a �575,000 cash grant.

The first phase of the project would revamp the canal between Stonehouse and Brimscombe Portwill and cost �25m.

It is hoped that the funding, given to British Waterways, will help release additional Lottery money.

The money, from the South West Regional Development Agency, will also be used to create a plan to expand Stroud along the canal corridor.