The Dial-A-Ride scheme offers door-to-door transport for 3,000 people and costs �500,000, with 50% of funding coming from the county council.

Five district authorities make up the rest of the funds but three are considering pulling out.

County councillor William Webb has urged district councils to continue to support the scheme.

He said the facility was not "doomed", but the county council could not deliver the same level of service without the help from the district councils.

'Well-loved'

"It was a partnership that was operating so sweetly but when one of the partners leaves the partnership, it puts intolerable strain on the others.

"This is a well-used and well-loved service. It reaches parts of the county which we would never be able to reach with a normal service bus and it gives those isolated hamlets and isolated farm cottages the opportunity to be connected."

He called for a "rethink" to save what he described as "a vital service in a huge rural county like ours".

But councillor Nick Worth, deputy leader of South Holland District Council, said they had no option but to review the current funding situation.

"At least two other councils - East Lindsey and South Kesteven - have also given their notice to withdraw and if we don't give our notice then we will automatically be rolled on into the new programme and end up picking up their bill," he said.