They are now planning another legal challenge in the shape of a judicial review.

Jean Kennedy, a founder member of Friends of Hartlepool, said: "This is disgusting and I am stunned that this Government is allowing our little town to be the resting place for all the filth in the world.

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"This is opening up the floodgates for other countries to come forward and dump their old vessels in Hartlepool.

"It doesn't matter how much they are spending to make the town a tourism destination because they are killing what should be the jewel in ourcrown.

"Seaton Carew is a beautiful natural spot yet now the backdrop of that will be all these toxic ships and we will be living within an industrial estate."

Protestors claim they will fight the decision to grant the waste management licence and the exemption to bring in asbestos contaminated ships.

Jean Kennedy added: "I am sickened by the decision but this won't be the end.

"We plan to take this to a judicial review and we will be watching the developments very closely.

"We have petitions with thousands of signatures on that say they don't want these ships coming here."