CAMPAIGNERS fighting to save historic Sherborne House look set to be dealt a second blow in a week after county council chiefs announced the building could now be put up for sale.

Trustees of the Grade One listed building were left devastated after their bid for £3 million from the Heritage Lottery Fund for vital restoration work was rejected.

Now the cash-strapped county council, which owns the Palladian structure, is planning to put it on the market.

But chairman of the trustees John Miller is asking councillors for an assurance that it will be allowed to stay open for the foreseeable future.

"We have an ongoing arts programme which is committed through to February 2007 and for which we have Arts Council Funding," he said.

"We are also questioning the Lottery decision to see if there is any possibility of movement or resubmission if we can satisfy some of their misgivings.

"At the same time we are also looking at any other sources of funding which could substitute for the Heritage Lottery Fund but £3 million is a large amount and will take time." Portfolio holder for environmental services at DCC Cllr Hilary Cox said: "Although we share the trustees' absolute disappointment, we will have to look at disposal of the house. As a council we do not have the funding that the house needs."

And she added: "We are not beasts and we will not do anything rash and overnight without consulting the trustees."

Supporters of the building have been working for over a decade on how to fund repairs to its leaking roof.

They eventually hoped it would become a regional centre for the arts.

Although it has a Tudor wing, the bulk of the house was built in 1720. The council leases it to the Sherborne House Trust.

Members of the cabinet will discuss the matter on Wednesday, July 12.