The Lamb Inn is increasingly likely to be reprieved when the regeneration of the adjoining Hothamton car park is completed, the Observer can report.

Developer St Modwen Properties is seeking to incorporate the 19th century building in its latest designs for the far-reaching changes.

Its development surveyor, Gary Morris, said it was '80 per cent certain' the pub would be kept.

St Modwen's originally intended to knock down the Steyne Street pub and replace it with three trees.

Licensees Sherry and Andy Rawlins launched a campaign three months ago to keep the pub standing.

More than 500 people have backed them. Mrs Rawlins said last weekthat she was increasingly confident about The Lamb's survival.

"It's absolutely brilliant that the pub is almost certain to stay here. But we can't relax until we have got something saying that in black and white and signed," she commented.

"The present situation is causing a lot of uncertainty for us and our regulars. We also don't want people looking for somewhere else to go because they think the pub is going to shut. We have put a lot of work into it and we want it to stay open – and so do more than 500 other people."

She said the campaign had been put on hold while talks were taking place with St Modwen's. But it would be re-launched if it seemed likely once more that the pub was under threat of demolition.

Mr Morris said: "I understand why Mr and Mrs Rawlins are impatient in wanting to know what is happening with the pub.

"I am reasonably confident we will be able to accommodate the pub within our scheme. I would say it's 80 per cent certain. However, I can't give a 100 per cent guarantee. It will be another few weeks before I can do that.

"All I can say at the moment is that the plans we are working on have the intention of keeping the pub. There is a lot of work on the schemes going on at the moment. I want to be honest with everyone about the pub's future rather than making promises which I need more time to be able to know whether I can keep."

St Modwen's designs for the Hothamton car park publicised last January showed the Hothamton car park being replaced by a food store, 25,000sq ft of offices, a 30-storey tower of flats and a possible health centre.

The company intends to put its latest proposals for the area – and the Regis Centre site – on show this summer. Planning permission for the works could be sought around December.