REGENERATION agency One NorthEast is withholding vital funding from a rescue package for the troubled Weardale Railway - until it can be convinced the heritage line has a sustainable future.

A behind-the-scenes deal to raise £500,000 to save the County Durham line appears close to being finalised, according to supporters.

They say that, if agreed, the deal could see trains running again by late August or September.

But One NorthEast yesterday made it clear it needs to be convinced the project had a "sustainable future" before committing £120,000.

Meanwhile, a second heritage railway in the region has run into financial difficulties.

The Wensleydale Railway Association has sent letters to its 3,500 members asking for donations to raise £100,000 by the end of next month. The money is needed to "plug a revenue gap and replenish reserves" on the railway, which runs from Redmire to Leeming Bar, in North Yorkshire.

Details of the rescue deal for the Weardale Railway - plunged into voluntary administration in January with debts of almost £1m - were outlined at a closed meeting of Durham County Council's cabinet yesterday. But a leaked report suggests it could be bailed out with a mixture of some private, but mainly public, money.

Creditors have accepted an offer of 25p in the £1 - amounting to a total of £290,000. When legal fees and the railway's initial operating costs are added, accountants say £525,000 is required to get trains running again.

County Durham Development Company, Wear Valley District Council and One NorthEast will each put up £120,000 to take the railway out of administration.

The remainder will be made up from the ECT Group, Government Office North-East, the Weardale Trust, Sherburn Construction and former railway managing director Brian Morris.