Campaigners are delighted Walnuttree Hospital has been saved

The Walnuttree Hospital in Sudbury, Suffolk, was to be shut because of fears over fire safety.

Managers have set aside �300,000 so the hospital can meet fire regulations.

The West Suffolk Hospitals NHS Trust and representatives of community groups will now look to formulate plans for the years up to 2007.

The timing of the reprieve announcement and the award of cash are thought significant by campaigners hoping to save the Walnuttree.

They had been due to stage a round-the-clock vigil to protest at the closure plans.

They had also fought a highly visible campaign, which included a lobby of 10 Downing Street and a 10,000 signature petition.