THE battle to save the world's most famous locomotive for the nation has been won after an overwhelming show of support from all over the country, it will be announced today.

The National Railway Museum, in York, beat off competitors from around the world to ensure that the Flying Scotsman will remain in Britain.

The museum submitted its sealed bid for the steam loco just before the deadline passed at the end of last week, and the good news came through late last night.

As well as having historical importance, the victory is expected to have a major economic benefit for the city, generating £15m and creating 100 jobs over the next five years.

And on top of that, steam trips around the region could generate an additional £7.5m and create a further 50 jobs.

The successful bid was put forward with the help of a £1.8m grant from the National Heritage Memorial Fund.

An initial £365,000 was raised through the appeal the museum launched in February, and that figure was matched by billionaire Sir Richard Branson of the Virgin Group.

A further £60,000 of donations by the public raised that total to £790,000 - and the total of £2.59m was enough to secure the engine and keep it running for years to come.

The regional development agency Yorkshire Forward has given an additional £500,000 to create an exhibition within the museum dedicated to the 81-year-old loco.

Elated museum head Andrew Scott described the acquisition as "a tremendous victory for the nation".

He said: "There can be few national treasures capable of stirring up such a passion and a will to succeed, but the Flying Scotsman has certainly proved to be one of them.

"In the few short weeks since we launched our appeal, we have received literally thousands of donations and messages of support from people of all ages and backgrounds.

"The strength of feeling among the British public has been truly staggering and we can't thank them enough."

The Government's Culture Secretary, Tessa Jowell, sent her congratulations.

"The age of steam is one of this country's greatest gifts to the world," she said.

"The Flying Scotsman stands today as a visible reminder of our proud industrial past but its is loved for so much more.

"From Brief Encounter to Auden's Night Mail, the romance of train travel is part of who we are."

The engine was put on the market by its private owners, Flying Scotsman plc, in February and it had been feared it could have gone to a foreign buyer and been shipped abroad.

The company's chief executive officer, Peter Butler, said they were delighted it would now be part of the national collection.

"We hand her over in better condition than she has been since 1963, when she was last in public ownership, and we wish her well," he said.

LNER locomotive No 4472 Flying Scotsman was designed by Sir Nigel Gresley and built at Doncaster in 1923.

It was the first steam locomotive to officially break the 100mph barrier, in 1934.

Published: 05/04/2004