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The Government has confirmed that the University of Greenwich will be taking over the Royal Naval College, ending months of specultation over the future of one of Britain's most historic sites.

Last week's announcement means that the university will be the main occupant of the college, which is a scheduled monument. It has promised to increase public access to the grounds and the famous painted chapel and to support the Government's bid for the designation of Greenwich as a World Heritage Site.

The 17,500-student university plans to dispose of several existing buildings and spokespeople say that the savings thus accrued should equate with the cost of running the new site. The college would house most of the business faculty, as well as central administration, computing and library facilities and catering. There will also be student halls of residence.

The university has stressed that it will maintain the architectural and historic integrity of the Royal Naval College site. Vice chancellor David Fussey said he was delighted that the university had been chosen as the main occupant for the site and said that he would continue discussions with politicians of all parties to ensure the best possible solution for the nation and its heritage.