The London Lighthouse HIV and AIDS charity appears to have won its battle to stay in its purpose built premises - but its residential services are still set to close.

A pounds2m rescue package will be presented to managers next Monday.

Lighthouse managers put the building up for sale after the withdrawal of pounds1.7m of NHS funding made continuing its residential services unviable. The sale would have meant moving its other services elsewhere.

The deal includes selling part of the building to the Notting Hill Housing Trust, which proposes to convert the residential unit into social housing.

Several grant-giving trusts have also offered funds.

Kensington & Chelsea and Westminster health authority last week started consulting on proposals to replace the Lighthouse's residential care services.

The HA proposes continuing to buy from two current providers, with more beds purchased from a specialist unit for drug users with HIV and AIDS and from a south London hospice.