The Peggy will return to Castletown, Manx National Heritage says

Peggy was formerly housed in a cellar that was often flooded by the tide

A 232-year-old yacht, which was removed from an Isle of Man town for repairs, will be returned, Manx National Heritage has said.

The Peggy was removed from its original boathouse at the Nautical Museum for conservation work in 2015.

The charity's chairman Jonathan Hall said it was the trustees' "intention and plan to return her" to the town.

The body was previously accused of having "no enthusiasm" for the project.

Mr Hall said the vessel was of "international significance" as it was the "only surviving schooner from the 18th Century".

"Not only do we have the boat, we have the 18th Century buildings, we have a unique dock and we have a lot of records that put it all in context," he said.

"That combination means that she has to be in Castletown."

Jonathan Hall said a combination of private and public funding was needed for the project

Initial plans are in place to display the vessel rigged in a dedicated area in the stable-yard at the Nautical Museum as part of the 'Quayle Legacy Project' at an estimated cost of about £5m.

Mr Hall said that was "very much a ballpark figure" at present and would "exhaust all of the trustees' reserves and considerably more".

It was hoped the project could be completed by 2026 with a combination of public and private funding, he said.

He added that the project was a "medium-term priority", following the Laxey Wheel repairs, the completion of a TT gallery at the Manx Museum and the refurbishment of the courthouse at Castle Rushen.

The future of the vessel is due to be debated by politicians at the May sitting of Tynwald.