Councillors voted to set up a working party to look at the future of the market hall - including a business plan put forward by the traders.

The group is likely to include input from councillors, traders, the National Federation of Market Traders, the Chamber of Commerce, the National Association of British Market Authorities and other relevant organisations.

A report will then go back to the council before March 31.

Cabinet members had originally voted to turn the market hall over to a single retailer - possibly new company Asco - at a meeting last month. This would save the council more than £450,000 a year in rent to the market hall's owners Allied.

But the decision caused a public outcry and led to a petition signed by around 13,000 people and a Facebook group with 4,500 members, as well as more than 100 protestors marching from the market to Morecambe Town Hall for yesterday's full council meeting.

A recommendation put forward by council leader Stuart Langhorn to defer a decision until a report had been made by a working party was approved by councillors.

Coun Anne Chapman said: "It's really important to keep an indoor market. There are 123 jobs in there and one of our priorities isto support our local economy and closing the market would be a retrograde step."

Coun Chris Coates added: "This is a victory for people power."

Speaking after the meeting, market tenants' association member Dennis Buczynski said he was hopeful the market now had a future.

The traders' business plan includes the possibility of the market operating from the upper floor with a single retailer below.

"This is confirmation of what we have always thought - people want to see the market continue and they have shown that," he said.

"We have had fantastic public support, which has been fundamental to getting our message across.

"The council got the message loud and clear and the campaign showed the intensity and the passion that people have for the market."