Newport City Council and the National Assembly for Wales have agreed a scheme to save and display the mediaeval ship discovered on the banks of the River Usk during the construction of the £13.3m Newport theatre and arts centre.

At an additional cost of £3.5m, the ship will be housed in a 280sq m basement beneath the centre's ground floor gallery and main foyer.

Visitors will be able to move around the vessel at various levels, as well viewing it from above, through a glass floor in the foyer.

Edwina Hart, minister for finance, said: 'The discovery of this rare national treasure has brought Newport to the forefront of national and international interest.

'I am delighted to announce that the Welsh Assembly Government has agreed to grant substantial funds to enable the ship to be lifted, recorded, conserved and displayed.'

An interpretation gallery will be created alongside the ship using artefacts found in the excavation. The lives of the ship's people will be recreated digitally.

It is estimated that it will take three weeks for archaeologists to lift the ship and timbers will be stored in fresh water tanks until they can be treated.

Newport City Council and the Assembly have allocated £400,000 and £200,000 respectively to the excavation already and the Assembly will be giving a further £1m this financial year.

Work began on the theatre and arts centre in May this year and it was due to open in the spring of 2004, however, work to excavate the ship and the additional construction work is likely to push that opening back until the autumn. Details: www.newport.gov.uk