The restoration of an historic Kent paddle steamer has moved an important step closer. The Medway Queen sailed into the history books when it's brave crew made a record seven crossings to rescue 7,000 troops trapped on the Dunkirk beaches during the Second World War.

Now an £1.8m agreement with the Heritage Lottery Fund (HLF), has been signed to signal the rebuilding of the dilapidated vessel.

It means the search can start to find shipyards interested in rebuilding the hull.

But Brian Goodhew, 69, from the Medway Queen Preservation Society, says a further £2m is needed to fully restore the ship to its former glory.

He said: "We are now free to approach shipyards to rebuild the hull to its traditional standard with rivets.

"The HLF said the Medway Queen is going to be exactly how we remember it. If it’s heritage, it’s going to be built to original plans and skills."

The society has already received a £25,000 donation from an anonymous trust for the restoration of its engines that are currently on display at Chatham’s historic dockyard.

Mr Goodhew, a former crew member, added: "We are always looking for sponsors for parts of the ship such as its giant paddle wheels. It is an ongoing preservation project."

The remaining parts of the vessel are in storage, including 8,000ft of decking, its funnel and paddle boxes.

Mr Goodhew hopes that one day the Medway Queen will be a tourist attraction again as she was during her days as a pleasure cruiser.

"We would like it to be part of the tourist trail in Medway," he said. "When people visit the cathedral, castle, and the dockyard they can then come on board the Medway Queen.

"It’s an important part of Medway’s history and should be restored, not only for bringing back thousands of troops from Dunkirk but because a lot of young people are alive because it brought their grandads back."

Factfile*In 1924 the Medway Queen was built in Troon, Scotland, and was a pleasure cruiser that ran daily trips between Chatham, Strood, and Sheerness, Southend and Clacton-on-Sea in Essex until the Second World War.

*From 1939 it helped move evacuees from Kent to East Anglia and was enlisted in the Royal Navy as a minesweeper in 1940.*The Medway Queen then became famous for carrying 7,000 troops back from the beaches of Dunkirk over nine days between 26 May and 4 June, 1940.

*After the war it was converted back into a pleasure boat until it retired in 1963. It was then sold and opened as a nightclub venue on the Isle of Wight in the 1970s.The vessel was accidentally sunk in the River Medina, on the Isle of Wight, and sank again in Chatham Dockyard before the Medway Queen Preservation Society had it raised and moved to Damhead Creek in Hoo in 1987.