CAMPAIGNERS have lost a two-year fight to bring Sir Walter Raleigh's statue back to his former home in Dorset.

Culture Secretary Chris Smith has announced the monument will be moved to Greenwich to mark the Elizabethan explorer's naval connections.

The decision has disappointed historians in Sherborne who wanted the statue - currently standing outside the Ministry of Defence building in London -- to be sited outside Sir Walter's former home at the town's castle.

But they are now considering commissioning their own statue for the town.

Campaigner and vice-chairman of the town's museum association John Firmin said: "We are very disappointed. We had got to the stage where we were really in contention so it has come as quite a shock.

"It was between London, East Budleigh in Devon and ourselves. There are a few questions we still want to ask, in particular, is the statue going to be in the public domain?"

And Mr Firmin added: "There has been a lot of interest in the campaign and the community support has been tremendous. In order to keep that going we may suggest having our own statue of Sir Walter made by a local sculptor."

Sir Walter lived in Sherborne with his wife Rossy Throckmorton - maid-of-honour to Elizabeth I.

Sentenced to death on numerous occasions for conspiring against the monarch, he was finally executed in 1518.