AN ANNOUNCEMENT on the fate of the 1998 World Equestrian Games is expected tomorrow, following continuing negotiations between WEG Ireland and a possible £2 million sponsor, whose cash injection could be the key to a new commitment of Government funding for the £10.9 million project.

"We're still in discussions and that is positive," Michael Stone secretary general of the Irish Equestrian Federation, said yesterday. "If we weren't talking then things would be finished. Once the sponsor is committed to the project we will be in a position to talk to the Government."

WEG Ireland representatives hope to be able to finalise a deal with the as yet unnamed backer by tomorrow and, once a firm commitment has been agreed, the 1998 games organising company will then approach the Minister for Tourism and Trade, Enda Kenny, in search of renewed State funding.

The Minister refused to agree further Government backing for the project at the end of April after Bord Failte had paid out operational costs of £500,000 during 1994 and 1995 to WEG Ireland.

In a further move, Bill Henson, co-ordinator of the British attempt to stage the 1998 games, has withdrawn Harrogate as a possible alternative venue in the event of the Irish scheme collapsing.

Henson had informed the International Equestrian Federation (FEI) that a British venue would only be available if a decision to resite the games was made at the FEI meeting in Hickstead last Friday. The FEI agreed to a further two-week stay of execution for the Irish project at that meeting and, subsequently, Henson stated that Harrogate was no longer available.

Aachen, one of Germany's fop equestrian venues, also pulled out last month, although both Berlin and Stuttgart have been proposed as possible alternatives.