The number of visitors to the garden has fallen since it opened in 2000

Discussions with a mystery backer - who could save the cash-strapped site at Llanarthne from receivership - are continuing, and it is hoped that a rescue package for the attraction will be agreed as soon as possible.

The garden's trustees were due to call in administrators in December after the Welsh assembly government refused to provide �3m to bail out the attraction.

But just hours before the talks were to begin, the new source of funding emerged with a potential rescue package.

Complex negotiations still lie ahead, but in the meantime the garden, which is under daily observation by its accountants PricewaterhouseCoopers, will remain open.

This is a tragic situation for the people who work here Trevor Roach

"The next big date on the horizon as far as we are concerned is January 5," said garden spokesman Trevor Roach.

"The garden is breaking even at the moment but it cannot be allowed to make any loss because we cannot run up extra debts."

A total of 55 people were made redundant at the gardens in 2003 in a bid to save money, and Mr Roach said staff still working there were on three months' redundancy notice.

"That term is up on January 5 so it will either have to be extended to take account of the negotiations or something new announced," he said.

"This is a tragic situation for the people who work here but also for Wales itself."

He added that it was not yet possible to reveal the identity of the garden's mystery backer because negotiations were continuing.

After a promising start when it opened in 2000, visitor numbers at the attraction have slumped and it has been kept afloat by emergency handouts.