A group which wants to create an artificial reef off the South West coast has received a major boost from a body which distributes lottery money.

The Artificial Reef Consortium (ARC) wants to sink the 113 metre (371 feet) former frigate HMS Scylla off the east Cornwall coast for divers to explore.

Sport England says the scheme is a "brilliant idea".

It now wants to develop nearby Plymouth as a national centre of excellence for diving, saying the economic impact could be huge.

Not many buy a ship to sink it, do they?

Jim Clarke, Sport England

ARC estimates if the project went ahead at Whitsand Bay, it would generate around �10m a year for the local economy.

HMS Scylla, the last warship to be built in Plymouth, is the vessel the group has its eye on.

She has been laid up in Portsmouth for the past 10 years, but is up for sale. All bids must be in by Tuesday 1 October.

Whitsand Bay is already a popular spot with divers. It is hoped the artificial reef would then act as a catalyst for a far bigger scheme.

Whitsand Bay could become a diving capital

John Busby of ARC said: "Sport England have effectively taken us under their wing and are proposing to do much larger things than we thought possible."

"We've been acknowledged as a very viable project and a very interesting project for the region."

But those behind the project are competing with at least six other groups who want the frigate.

The priority is to buy time. The ship must be secured, then proposals for a centre of excellence will be drawn up.

Sport England regional director Jim Clarke said: "I think it's one of the most exciting ideas that I've ever come across.

"The potential of it is huge in regeneration and contributions to Plymouth in sports development and economic impact terms.

"I suppose what's really got under my skin in terms of this project is just the unusual nature of it. Not many buy a ship to sink it, do they?"

It is hoped the ship could help turn the region into the diving capital of Europe.