Gosport'S Royal Hospital Haslar will be shut down by the summer of 2008.

That's the deadline health trust chiefs have given after the death knell was sounded on the much-loved hospital last night.

The decision to sink the final nail in the Haslar coffin means that facilities will be transferred to the Queen Alexandra Hospital in Cosham.

The Ministry of Defence will withdraw funding from the site in March 31, 2007 - but have agreed to let the NHS continue to use the site until services are ready to be transferred.

The decision was greeted with calls by residents for resignations of decision-makers.

More than 200 patients turned up at a board meeting of Fareham and Gosport's Primary Care Trust (PCT) to cheer campaigners who made impassioned pleas for Haslar and to jeer at health chiefs.

A motion of no confidence is now expected to be made in the board by members of Gosport C council. The town's civic chief has promised to continue the fight.

PCT chief Ian Piper said Haslar would close by summer 2008. "That is when we expect the QA facilities to be ready," he said.

Cllr Mark Hook, whose speech last night was met with rapturous applause, said: "It's absolutely disgraceful. They've failed to listen to the people of Gosport and there's a total lack of confidence in them.

"The council has always unanimously supported retaining Haslar and I have no doubt we will continue to do so." Dr Philip Gray, a former Gosport GP, added: "The decision is very short-sighted. Figures show that demand is steadily rising and there is no spare capacity. Haslar has spare capacity for the future. They will soon find they run out of space and by then it will be too late."

Haslar Task Force campaign spokesman Cllr Peter Edgar said the hospital had helped reduce waiting lists at other hospitals.

In a long-running battle to avoid the hospital closure, 22,000 residents took part in a march, 16,500 letters of support for the hospital were fired off and supporters took a petition to Downing Street.

Cllr Edgar said at the meeting: "This is driving the final nail in the Haslar coffin and nobody will thank you for that.

"Local people will be devastated. We believe a decision was made behind closed doors not to use the Haslar site. Patients will have lost confidence in the PCT."

Trust members believe public consultation has shown building community hospitals as the hub of services in both towns is the best way forward for future services in Fareham and Gosport.

They say retaining hospital services on part of the Haslar site would be almost twice as costly and services would suffer.

Fareham Council supports closure. It believes it will mean a fairer deal for its residents.

s.Chairman Lucy Docherty, who threatened to exclude a noisy audience, said: "We've had to make a very important decision. Some people will like it, some will not. My job and the job of my colleagues is to deliver the best possible services for the residents of Fareham and Gosport. We have always had good intentions in this respect."

Project director Inger Hebden added: "If we went down another road there would be duplication of services, it would take longer and it would be more costly."

"It could mean a reduction in services in order to support Haslar. I personally support services rather than buildings."

Fareham Borough Council is supportive of the decision, which they believe will mean a fairer deal for Fareham residents.