THE PRESTIGIOUS Cutty Sark Tall Ships race is coming to Hampshire next year after a last-minute contract agreement.

Portsmouth and Gosport councils were just 48 hours away from losing the climax of the world-famous race.

Organisers were losing patience with the authorities either side of Portsmouth Harbour, who show-ed no sign of signing a contract to host the finishing celebrations.

But civic leaders jointly signed up yesterday to the major event in the country's maritime entertainment calendar to welcome the 80 schooners, square riggers and barques sailed by 3,000 young crews from many nations.

The Tall Ships could attract 650,000 visitors in July and August 2002 and bring £15m to the economy of the area.

Peter Edgar, Gosport Council leader, blamed the almost two-year delay in the event being agreed on "tortuous planning negotiations''.

The success of the Tall Ships for Gosport depended on the completion of the conversion of the ex-Royal Navy Royal Clarence Yard into a housing, leisure and yachting centre. The yard joins Portsmouth Navy Base and Portsmouth's Gun Wharf as major berths.

Mr Edgar said: "The Tall Ships organisers knew how important this event was to Gosport and how committed we were, so I expected them to be more patient.

"But to ensure Gosport plays a significant role as hosts we had to have the Royal Clarence Yard on board. We had to make sure it would be completed in time.

"When completed it will be the best deep- water berth in Europe for ocean-going yachts of all sizes. I'm proud Gosport will be a major player in this event.''

Nigel Rowe, chief executive of the International Sail Training Association, said: "We can put the delay in signing this agreement behind us now and look forward to Portsmouth Harbour staging the best ever Tall Ships finale.''

The partnership between Gosport and Portsmouth was the first major example of the two councils working together.

Next year's Tall Ships race starts in Spain. The race finale will cost £412,000, of which Gosport council will contribute £60,000, Portsmouth council £140,000, Berkeley Homes £30,000 to £50,000 and Portsmouth Harbour Events Ltd about £150,000 in sponsorship and donations.