A bid to keep the world's oldest passenger clipper ship in Britain has been rejected in favour of proposals to send it to Australia.

The 145-year-old City of Adelaide, currently resting on a slipway on the west coast of Scotland, faced being broken up for display in a museum.

Campaigners from Sunderland, where the ship was built, were told by the Scottish Government that their bid lacked practical detail - but they have vowed to fight on.

The City of Adelaide, built in Sunderland in 1864, is five years older than the Cutty Sark.

But the Sunderland ship presently sits on a slipway in Scotland under the ownership of the Scottish Maritime Museum.

Efforts have been made to get the ship returned to Sunderland for several years.

The Sunderland City of Adelaide Recovery Fund (Scarf) had hoped to raise the £1.5m it would cost to have the clipper returned to the River Wear, in Sunderland, where it was built by William Pile, Hay and Company.

Lasy year Sunderland councillor Peter Maddison, occupied the Adelaide for a week.

He put flags and banners on board that read Save Our Ship and Bring Adelaide Home.

Mr Maddison, a former merchant seaman and Sunderland councillor, said: "There will be a lot of broken hearts in Sunderland today.

"But after all, the ship lies there still. It will be months before anything can happen and the Australians have now got to demonstrate they can do this.

"I wish them well and congratulate them on their success but we will fight on."

He said Sunderland City Council had not demonstrated the political will and said a neighbouring authority is being approached to mount a new campaign.