A deal to secure the future of a trouble-hit drug and alcohol clinic should be finalised in the New Year.The Diana Princess of Wales Treatment centre in the former Mundesley hospital called in administrators during the summer.

A deal to secure the future of a trouble-hit drug and alcohol clinic should be finalised in the New Year.

The Diana Princess of Wales Treatment centre in the former Mundesley hospital called in administrators during the summer.

Agents Christie and Co today said a sale to a company in the medical sector was progressing. Spokesman Robert Mellamphy said it was with solicitors and a “positive outcome” was expected in January.

The £2m centre was hailed as Europe's largest drug and alcohol clinic when it was set up in the historic former tuberculosis hospital in 1997.

But the charity behind the venture, Adapt, called in administrators during July, shutting a sister unit Barley Wood near Bristol with the loss of nearly 50 jobs, but keeping open the Norfolk clinic in the hope of finding a buyer.

The Diana Princess of Wales clinic took its name from the tragic royal after her death. Charity bosses hoped the princess would open it having launched Barley Wood 10 years earlier. But after her death, which came just days before the first clients arrived in Norfolk, it was named in her memory with the backing of her family.

Adapt bosses flagged up funding problems in recent years and blamed tightening council purse strings for its demise.

The north Norfolk centre, which employs about 50 people, is registered for 71 clients