NEWPORT council has settled a long legal dispute with the archaeological trust that recovered Newport's medieval ship.

The Glamorgan-Gwent Archaeological Trust claimed the council owed them more than £118,438 for reclamation work when the 15th century ship was discovered.

The council refused to pay but it agreed to settle before the case reached court this month.

Bob Trett, a member of GGAT and chairman when the dispute started in early 2003, said: "I've nothing but praise for the council's decision. It's just a pity that we had to go through this hell.

"For a small charitable trust it's a lot of money. It's the difference between solvency and going under.

"This affair has damaged the trust, the ship project and the credibility of Newport council."

The ship was discovered in the Usk mud in June 2002 during construction of the Riverfront theatre.

GGAT, the regional body responsible for conserving archaelogical and historical heritage in south east Wales, was called in to remove it.

But the ship was far bigger than expected and the work took ten weeks. GGAT charged for an extra five weeks' work but three months later the council told them it would not pay because it believed the extra work had not been properly agreed.

Mr Trett, of Caerleon, said: "Now this is over, GGAT can get back on an even keel and I hope it will be more actively involved with assisting with the ship project.

"As a result of this dispute, four people were made redundant, though one has since been re-employed. It needn't have happened."

A Newport council spokesman said: "Newport council has no comment to make at this time."

The trustees of GGAT were unavailable for comment.

The ship is currently being documented and restored in a warehouse in Maesglas and is due to be displayed in an underground chamber at the Riverfront in around ten years' time.