SOUTHAMPTON'S world class yachting reputation is all at sea as doubts have been cast over the city's future involvement in a prestigious sailing challenge.

It could lose out on millions of pounds if organisers of the Round the World Race decide to ditch Southampton after 2005 as a key port for future global races.

Earlier this year the City Council agreed to pay out a retainer of £80,000 a year for seven years to Volvo for the privilege of hosting the start of races in 2001 and 2005.

But fears are growing that organisers are poised to scrap the city as a start or stopover port and move the focus of the race to Sweden or Norway where interest is at an all-time high.

The move would mean Southampton missing out on the estimated £7 million which event brings to the local economy.

But a Southampton City Council spokesman said: "We don't believe there are any changes on the horizon at the moment and believe that the two forthcoming races will be a success.

"Southampton is still the home of ocean racing as far as we are concerned."

Helge Alten, Volvo Ocean Race chairman who is based at the VOR headquarters in Whiteley, confirmed the race was set to change.

"We are operating out of Britain but this is not a British race. It is an international race," he said.

"We have taken over the race and in this first one we want to keep to the heritage of the race. It might be however that we will do things differently in future races. Everything is up for question and if this race is not a success there could be changes."

Last year Volvo, which bought the rights to the Whitbread Round the World Race in 1988, decided Southampton would no longer host the finish of the 2001/2 race.

The move brought to an end a tradition stretching back more than 25 years.

But event organisers see Britain as an important market and are hoping the UK will host a race stopover.

With only four boats entered and less than a year to go to the start, the success of the forthcoming Volvo Ocean Race is in doubt. Two more syndicates are set to be announced but organisers say the race will not be deemed successful unless a minimum of eight boats enter.

Lawrie Smith, who heads up the only British syndicate to register, was forced back on the sponsorship trail last year when his backers Silk Cut withdrew a £10 million deal after failing to secure guarantees over TV coverage.

A year later, Smith is still trying to tie up a deal despite hundreds of approaches to different British companies. With time running out, he likely to withdraw if funds do not materialise over the next few weeks.