Wightlink is celebrating a major breakthrough in its battle to save a cross-Solent ferry service used by one million people a year.

Two local authorities have withdrawn their objections to proposals put forward by Wightlink following the introduction of its controversial new W-class vessels.

The revelation was made at the start of a public inquiry into the proposals, which are still being fought by the Lymington River Association.

Wightlink wants to modernise its Lymington terminal, which is too small to handle the new ferries. It also wants to dump 2,000 cubic metres of mud near the entrance to the Lymington River to replace habitat likely to be eroded by the action of the ferries.

New Forest District Council and the National Park Authority have withdrawn their objections following talks between Wightlink and Natural England.

Under the agreement, the number of trips made by ferries on the Lymington and Yarmouth route will be reduced from 18,000 a year to 16,500. The vessels will also cut their speed by half a knot when operating in the Lymington River.

But representatives from the Lymington River Association told the inquiry that the measures were not sufficient to safeguard the environment.

Wightlink says the service could be restricted or axed altogether if its proposals to upgrade the terminal and replenish the foreshore are rejected.