DIABETICS who also need kidney dialysis have new hope of a life-saving operation with the decision to make a North East hospital a "centre of excellence".

The Freeman Hospital, in Newcastle, is one of only seven across England that will receive Government funding to turn little-used pancreas transplants into a nationwide specialist service.

It is expected to be given about £500,000 a year to increase the number of transplants.

Only ten have been carried out since they started in 1998.

The announcement was immediately hailed as fantastic news by both transplant charities and diabetic support groups.

It is expected to treble the number of pancreas transplants by 2009, from just 50 to 150 every year.

The operation is normally carried out in combination with a kidney transplant, for patients whose diabetes causes renal failure.

Rosie Winterton, a health minister, said: "A combined pancreatic and kidney transplant is a truly life-changing event for recipients and their families.

"The national commissioning of pancreatic transplants will ensure a high quality, expert service and equal opportunity of access for patients requiring this operation, no matter where they live."

The joint operation means that patients not only no longer require dialysis, but are also given a cure for the underlying cause of their kidney failure.

Compared to kidney transplant alone, it increases the chances of a patient surviving for a further ten years by between 30 and 80 per cent.

Derek Manas, clinical head of transplants at the Freeman Hospital, said: "This is great news for patients. We now need to get the message out to other doctors that we have got the money to carry out these transplants. Send us your patients."

Mr Manas said the Freeman team needed to carry out at least ten combined pancreas and kidney transplants a year.

Neil Bradshaw, 44, from South Shields, who became only the second Freeman patient to receive the double transplant in 1998, said: "This is absolutely brilliant. There are an awful lot of people in the North-East who can benefit."

The most recent combined transplant at the Freeman took place last Sunday when Clive Sowerby, 37, from Richmond, North Yorkshire received new organs.

A spokeswoman said he was "doing very well".