THE blood-stained silk purse carried by Lord Nelson at his death in his finest hour at Trafalgar has come to light after nearly 200 years.

The simple purse, with its pear-shaped splotch of blood, is among a long-lost collection of treasures relating to Britain's greatest naval hero found in the attic at the home of descendants of Alexander Davison, Nelson's personal friend, confidant and prize agent.

He lived at Swarland House, near Morpeth, Northumberland, and, although the house has been demolished, the trees he planted in the battle formation of the ships at Trafalgar, still remain.

The million pound archive - the finest to surface in more than a century - includes revealing and previously unseen letters from Lady Nelson and the admiral's mistress, Lady Hamilton, as well as notes from Nelson himself.

Sword, presentation wine coolers and anchor-shaped diamond brooch are also among the newly-discovered relics, which form what is almost certain to be the last such historic collection connected with Admiral Horatio Nelson ever to surface.

But it is the blood-soaked purse which is the most poignant and evocative reminder of the most authentic hero of British history.

It still contains 21 English gold coins which Nelson placed in it on the day of his death, in the midst of glorious victory on October 21, 1805, after a musket ball struck him in his left breast.

The "miser's" purse looks remarkably unprepossessing considering its owner's standing.

But Sotheby's coin consultant James Morton believes Nelson - who lost his right arm in 1797 - may have chosen it because the simple clasp meant it was easy to open.

The coins total about £14 at today's values. Four are dated 1798 - the year of his famous victory at the Battle of the Nile - and Mr Morton thinks Nelson may have kept them as "lucky" coins and had no intention of spending them.

The purse, the most intimate link with Nelson to have surfaced in modern times, has remained untouched by the Davison family in living memory.

It came to light a year ago after when Martyn Downer, jewellery director for Sotheby's, was called in to examine a magnificent diamond brooch, designed as an anchor and bearing the diamond-set initials HN, in an unspecified branch of the auction house on the Continent.

The purse is set to fetch up to £80,000 at the Sotheby's sale on Trafalgar Day, October 21, in which top price, of up to £150,000, is anticipated for the Nelson brooch.

Davison's letters, which will provide highly significant new source material for Nelson scholars, include 72 previously unknown and highly revealing letters to Davison from Lady Nelson, written between December 1798 and late 1800.

The series sheds light on the personality of Frances Nelson, known to her husband as Fanny, the wronged and virtually forgotten wife whose reputation has been totally overshadowed by that of her glamorous rival, Emma Hamilton.

A pair of previously unrecorded presentation Derby porcelain wine coolers, commemmorating the Battle of the Nile and each bearing the arms of Baron Nelson of the Nile and battle scenes from the victory, are estimated to fetch up to £ 60,000.

A similar price is anticipated for a rare "Nile sword", with gilt grip in the form of a crocodile and an enamelled depiction of the exploding French flagship, presented only to captains who fought at the battle.

Tom Pocock, Nelson's biographer, said: "It is the most remarkable Nelsonian archive and collection to be discovered for more than a century."

Nelson captured so much booty at the Battle of the Nile that he appointed old friend Davison as sole prize agent.

Handling the disposal of the enemy ships and many choice items that came his way made Davison a fortune. From his profits he presented a medal to every officer and seaman of Nelson's fleet - gold to captains and lieutenants, silver to warrant officers, bronze gilt to petty officers, and bronze to seamen and mariners.