Cutty Sark to be restored in time for 2012 Olympics

Final funding has been agreed for the £46 million restoration of the Cutty Sark, allowing the masts of the historic clipper to tower over Greenwich in time for the Olympics.

A grant of £3 million from the Department of Culture, Media and Sport has ended fears of a funding shortfall. The work follows a fire that swept through the craft in May 2007.

In a statement today, Gordon Brown said: "The historic clipper will once again be open to the public, and in pristine condition: yet another jewel for visitors in 2012 to enjoy."

Half the money has already come from the Heritage Lottery Fund, with the rest from private donations, Greenwich council and the Greater London Authority. Maldwin Drummond, chairman of the Cutty Sark Trust, said: "We're hugely moved by the enormous generosity."

The ship, built in 1869, is the last surviving tea clipper. It is being raised out of its dry dock, enabling the area below to become an exhibition space. The gardens surrounding it are being redesigned.