As part of Flood Alleviation Scheme work by the Environment Agency, three areas are being studied between Mitford and Hartburn to see if they are suitable for upstream storage when the River Wansbeck water levels reach a certain height.

The organisation is hopeful that one or two of them can be used for this purpose, with ground investigation works currently being carried out on the sites.

This would limit the work needed in the town centre, although there are plans to put in defences at High Stanners to match the existing flood walls in the town.

Flood Alleviation Scheme Project Manager, Phil Welton, said: "We have identified three areas — upstream of Mitford, upstream from Rivergreen Mill and a site at Broomhouse Farm near Hartburn — that could be suitable for upstream storage.

"We have carried out topographical and environmental surveys and we have now got contractors doing ground investigation works, using borehole machines and excavators to assess the conditions of what is below the surface.

"I'm very hopeful that upstream storage will be a viable option to help protect the town in the future and even if all three sites are suitable we will only need one or two.

"We would effectively build a dam across the valley and we will have to balance being able to store high levels of water on just one site with the embankment sizes being smaller if two sites are used."

Computer models will use data from the sites to show the flow of the river if upstream methods were installed.

The Environment Agency will present a range of options for the Scheme in Spring 2009 for Morpeth residents to comment on, including increasing the height of the flood defence walls in the town. It will also say what it believes is the optimum option.

An area it is focusing on in the town centre is High Stanners, which currently does not have a defence.

"It's likely that the scheme will include minor works at High Stanners to give the area the same level of protection as the rest of Morpeth town centre," said Mr Welton.

"This would allow us to let up to a one-in-50-year flood go through the town centre without going over the defence walls, as we wouldn't want an upstream storage facility to hold water every time the water levels rise."

He thanked the landowners at the three potential dam sites for their co-operation with the proposals, surveys and works.

The project is estimated to cost between £13m and £15m and be completed in 2011.

Once the project team has decided on its preferred option, it will make a business case that will need to be approved by the Agency at national level and also the Government.