THE Environment Agency has said that a final decision on whether or not to go ahead with a £1.3m flood defence scheme could still be some way off.
It says there is "much environmental work to do" before a decision on the project at Pickering will be made.
The town was severely hit by flooding early last year and the proposed project would protect the town from any similar deluge.
Environment Agency area manager Craig McGarvey said a number of options had been looked at, ranging from taking no action to the £1.3m project.
He said: "Initial findings suggest it may be technically feasible to promote a scheme to provide improved protection by providing localised defences.
"However, there is more environmental work to do and the acceptability of a scheme on environmental grounds is by no means certain at this stage."
He said the scheme had been included in the agency's long-term plan for 2002 and 2003.
The agency may ask Pickering Town Council to take a lead role in developing an overall strategy for fighting floods.
The town's deputy mayor Betsy Hill said: "It is a very early stage, because the consultation process is about to start. However, I am delighted that, at last, the agency will discuss the relief of Pickering and has put a scheme together on which it is going to consult."
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