The post office was due to close at the end of June

Residents of Stillington, near Easingwold, decided they were going to save the village facility after postmistress Jenny Nesbitt and her husband Stan announced they were closing the shop.

They set up Stillington Community Association Ltd (SCAL) with more than 100 local people buying shares at �10 a time.

And the Department for Environment, Food and Rural Affairs (Defra) has announced it is providing the villagers with a �49,250 grant to make up the final third of the �135,000 needed.

Community spirit

Brian Handley, a SCAL spokesman said: "The residents of Stillington have pulled together in magnificent fashion.

"They've showed great community spirit and a determination that a vital village resource should not be lost."

Defra is giving the grant under its Rural Enterprise Scheme which supports rural economies and communities.

Defra project officer Christine Clark said: "In rural villages the post office and shop is often at the hub of the community.

"We are delighted that Stillington and its residents will benefit not only from the continued existence of the post office but also from any profits it makes."

The community's fundraising has involved a range of loans, gifts and grants as well as the �10-a-share scheme.