sporting rivals Bobby Robson and Peter Reid buried the hatchet to lay a hospice foundation stone yesterday.

The respective managers of Newcastle United and Sunderland football clubs joined in with work on the new St Oswald's Children's Hospice, in Gosforth, Tyneside.

Serving families from Northumberland, Tyne and Wear and North Durham, the eight-bed facility will provide specialist care for children with progressive and life limiting conditions, such as muscular dystrophy and spina bifida.

Building work began in August, after St Oswald's Jigsaw Appeal raised £3.8m.

Yesterday, Mr Robson and Mr Reid met children and their families at an event to celebrate St Oswald's gift to the North-East.

St Oswald's trustee Jon Watson said: "The laying of the foundation stone was a very important event for us.

"It signified that our dream of providing respite care for North-East children was about to become a reality.

"We were delighted that Bobby Robson and Peter Reid put friendly rivalries aside to celebrate this key development of our new children's service."

The Jigsaw Appeal is now concentrating on raising the £5.1m needed to run the hospice once it opens in early 2003.