A VILLAGE church could be in line for a windfall after an ancient pendant was declared treasure trove.

Experts from the British Museum have compared the significance of the seventh century pendant, found in the grounds of St Peter and St Paul's Church in Stainton in Cleveland, with that of the famous pectoral cross once worn by St Cuthbert.

The gold pendant - with an inlaid garnet - was found during excavation work.

At a treasure trove hearing last Friday, Michael Sheffield, the Teesside coroner, ruled that, under the 1996 Treasure Act, the find was treasure and as such should become the property of the Crown.

He said no-one had a right to the pendant or a prior interest.

The pendant will now be delivered to the British Museum, where an independent committee will decide its worth.

It is expected to ask Middlesbrough's Dorman Museum, which wants to display the pendant, to meet its value and offer the money as a reward to the church.

The Rev John Ford, priest in charge at St Peter and St Paul's, which dates from before the Norman Conquest, said they would like the pendant to be displayed locally, but did not want to forgo any financial reward as it could be used to maintain the church for future generations.

The pendant was discovered by David Graham, an archaeologist at the University of Durham, who was keeping a watching brief while building work at the church was carried out in March 2001.

Prof Rosemary Cramp, professor emeritus in the department of archaeology at Durham University, said the pendant showed a high degree of craftsmanship and was likely to be part of a necklace.

She said that finds of gold and garnet jewellery were rare in the North-East and likened it to the Durham Cuthbert cross, a copy of which is used in official ceremonies at Durham Cathedral.

The pectoral cross, to be worn round the neck, is thought to have belonged to St Cuthbert, whose remains are interred at the cathedral.

The newly-found pendant, featuring a garnet set on a bed of hatched gold foil with a filigree surround, is 15mm long, 12mm wide and 2mm thick.

Kenneth Sedman, senior curator at the Dorman Museum, said the pendant would be a star exhibit.

The museum will seek grants to pay for the pendant and hopes it can be on display within a matter of months.

Mr Sedman declined to guess how valuable the pendant might be.