The ship's bow and stern are still there

Staff at the Glamorgan-Gwent Archaeological Trust (G-GAT) are celebrating after being told a bill of �31,000 - out of a total of �130,000 - will now be paid.

Newport Council is not commenting because the dispute is contractual.

Last autumn saw trust archaeologists begin the task of working on the trading ship, which was embedded in the mud of the River Usk on the site of the city's new arts centre.

The discovery of the ship - which contains vital clues about Wales' early sea trade with Europe - has been hailed as a major discovery.

But the costs involved in the scale of the project saw the archaeological trust - a registered charity - run into trouble.

"It looks like we have got an agreement, now we have to send a letter of confirmation back to them," said trustee chairman Bob Trett.

Work at the ship excavation

He added: "We are obviously in dispute about the larger sum but I am relieved, it enough to keep us in business.

"With our various incomes and grant we should be okay now.

"We are not flushed with money but with careful management we should be okay for the foreseeable future."

Mr Trett added: "This should never have happened, nevertheless the important thing is we can carry on.

"Our business as a charitable trust means we don't have assets - our assets are our staff, now we can pay the staff and continue."

Mr Trett said the non-payment threatened the survival of the trust.

G-GAT was due to pay its staff shortly and, if they had not been paid, the trust would have been forced to issue redundancy notices, said Mr Trett.

Difficult work

The project, which will eventually see the ship on show to the public, became more complex, he said.

The trading ship was found in the orchestra pit of Newport's new arts centre.

Many of its timbers have been excavated and are in huge water tanks at Llanwern.

Charles Ferris, from Save Our Ship

Staff from the trust came off site in December 2002.

G-GAT has detailed records about the excavation project which could be used by new contractors.

Mr Trett said: "The council now needs to appoint contractors to excavate the bow and stern."

The trust also provides planning advice for 12 authorities across south Wales.

If it went into receivership, Mr Trett had warned planning applications could have been delayed.

Charles Ferris, from the pressure group, Save Our Ship, said the ship's sophisticated construction has surprised everyone.

"It was thought there was about 500 timbers but the ship has a double skin.

"The wood is Forest of Dean oak, it is a local ship but the keel was brand new.

"It is thought the ship was capable of a trans-Atlantic crossing," he said.