More than 40,000 animal carcases are buried in the giant Inkerman site at Tow Law in County Durham.

The site saw bitter protests from local residents who feared it would be a lasting health hazard.

Now landowners and officials from the Department for Environment, Food and Rural Affairs (Defra) are close to agreeing a plan to turn it into a wildlife sanctuary.

Locals say the plan will help regenerate the area

The burial site is owned by Defra, which bought it from local firm HJ Banks during the crisis.

HJ Banks still owns the surrounding land.

It wants to give back a large slice of land for a 500-acre wildlife sanctuary.

Local people say the reserve could attract thousands of people and help regenerate of the area.

Jenny Flynn, chair of Tow Law Town Council, said: "The plan is for a massive licensed nature reserve under the auspices of the Durham Wildlife Trust.

"The trust would organise the park, plus the creation of guided country walking routes.

"We are talking an area of about 500 acres, stretching from the burial site to the nearby Cornsay Colliery."

'Boost for area'

A spokesman for HJ Banks said the firm had agreed to donate the land and was awaiting clearance for the deal to go ahead.

A spokesman for Defra said the plan was one of a number being considered.

Full restoration of the site is still a year away, but maintenance would need to continue for at least 10 years.

Councillor Joe Armstrong, of Esh parish council, said: "The sanctuary would be a massive boost for this area which was blighted by foot-and-mouth."