Up to £20,000 and a new possible site have been identified to help North Walsham Town Council relocate following the proposed £1.6m Wetherspoon development.

The national chain wants to open a pub in the town, showing interest in the town council's New Road offices.

The building's owner, North Norfolk District Council, has offered the town council help with finding a new site and money for the move.

A function room at an empty pub in the town, The Black Swan, is in the running to provide the town council with new offices, and the district council has written to the pub's owner Enterprise Inns.

North Walsham town mayor, Richard Sims, said he was surprised there had been suggestions of a stalemate between the district and town councils.

He added: 'Our ongoing talks continue to be positive and together with the district council's offer of funding to help the relocation and its commitment to help us find suitable alternative accommodation, I am confident of a positive outcome in the near future.'

A spokesman for the district council said there were two other sites that had been looked at, but they were not suitable.

District council leader Tom FitzPatrick said: 'We collectively recognise the vote of confidence which comes from a national chain seeking to invest in the town, and for this reason we are committed to bringing a Wetherspoon offer to North Walsham together with the jobs and investment which will result.'