A DRAMATIC cliff top operation to salvage buried treasure has led to the surprise discovery of a major Anglo-Saxon settlement, archaeologists said yesterday.

English Heritage experts launched a rescue bid earlier this year at Whitby Abbey, in North Yorkshire, where a stretch of the famous headland rich in archaeological deposits was in danger of crumbling into the sea.

The excavation began after warnings that the cliff edge would retreat drastically over the next 20 years, posing a serious threat to an area near St Hilda's Abbey, which is known to hold vital clues about the origins of the abbey, founded in 657AD by King Oswy of Northumbria.

But the second phase of the work, now being carried out by a team of 18 archaeologists, has resulted in several unexpected discoveries.

English Heritage archaeologist Pete Busby said: "This second phase of excavation is revealing a very urban Saxon settlement perched on top of the headland.

"Everywhere we look we find buildings dating back to the eighth and ninth centuries. That has come as a major surprise and poses the question of what came first - St Hilda's Abbey in 657AD or the town? What is for certain is that this must have been a really bustling place in its heyday."

He added: "Working on the headland is a rapid learning experience, even for experienced archaeologists. There is just so much material to uncover before erosion takes its inevitable toll."

The work - concentrated between St Mary's Church and the coastguard station - has unearthed a particularly intriguing feature over the past few days.

A burnt rectangular patch of ground, surrounded by stonework, is believed to have been a primitive pottery kiln or even a malting oven, used in beer making.

Experts say this would make sense, as brewing was a hugely important activity during the Dark Ages, when alcohol was regarded as safer to drink than water.

Visitors will have a chance to view the work at close quarters on Saturday and Sunday to mark National Archaeology Days.