A health authority has agreed to fund home care for a terminally ill man who didn't want to die in hospital.

Jason Powell, 33, has multiple sclerosis and pneumonia and has been told he will probably be dead by Christmas. He had managed to live in a specially adapted flat for the past few years but had to go into hospital. He no longer needs to be there and wants to go home with 24-hour nursing care, but Dyfed Powys HA had initially agreed to meet the cost only of a nursing home place.

Mr Powell had been given permission to seek a judicial review application in the High Court. The case was due to be heard this month, although the court is on vacation schedule, with judges and barristers holidaying in sunny climes.

Mr Powell's counsel told Mr Justice Silber last month that he was terrified of going into a nursing home and could not be forced to go. Unless the HA funded home care, he would live out his last months in a hospital bed. His lawyers had argued that the HA's refusal to fund home nursing care was irrational, unreasonable and a breach of article 8 of the European Convention on Human Rights, the right to respect for private and family life.

Solicitors announced last Friday that an agreement had been reached.