Archaeologists have revealed a vessel of international historic significance is sitting in St. George's Harbour, the only one of its kind in the world.

The marine archaeology team, from East Carolina University in the US, say the suspected remains of HMS Medway could now prove "an important tourist draw card" and must be protected at all costs.

Plans for a new marina have been modified to keep the wreck in situ and the vessel is now a restricted wreck site out-of-bounds to scuba divers.

Derrick Burgess, Minister of Works and Engineering, told the House of Assembly the findings of the archaeological team had resulted in "one of those rare win-win stories".

"Upon discovering the wreck's identity and significance, the Government, archaeologists and the developers immediately began to work together to produce a plan that would protect the site," said Mr. Burgess.

"Even before completion and submission of the survey report, an alternative version of the Marina Plan was produced, one that highlights and protects the wreck's historic value whilst ensuring that it is not disturbed.

"At the same time, the alternative version of the Marina Plan allows some measure of future access to the public to view the site."

The archaeologists say the wreck is either HMS Medway or HMS Medina, iron-hulled British gunboats used to guard Darrell's and Tucker's islands against escape attempts by Boer Prisoners of War in the late nineteenth century. It is however, most likely to be the Medway, which was previously deployed in China by the British Admiralty.

Mr. Burgess said: "Most persons involved in this exciting project were pleasantly surprised to find that this wreck, HMS Medway, a gunboat of the Medina class built in 1876, is one of great international historic significance.

"Most significantly, it is the only known remaining gunboat of this class in the world."

Describing the boat as "a naval marvel", the Minister said it was in "remarkably good condition, considering its age".

There were 12 vessels in the Medina-class, all of which were built by Charles Palmer at Jarrow, in the north east of England. The class were 'flat-iron' gunboats meant to operate on rivers, and renowned for their manoeuvrability, in part due to having both bow and stern rudders.

They were not only propelled by steam engine but also had three barkentine-rigged masts.

An "experimental class of warship", a report by the archaeological team states: "Medina-class vessels were peculiar in their architecture with a sharp, tapered bow that widened into a turret-like forecastle, a bulbous tumblehome amidships, and fantail stern."

It says: "The vessel can be considered rare, as the only known surviving example of a truly unique vessel type, as well as representative of this class of gunboat, and one of the oldest forms of iron-hulled British river gunboat.

"Moreover, it is potentially the oldest British gunboat of any class that can still be found afloat or in an archaeological context.

"The remains of Medina or Medway potentially represent the only remnant of an M-class gunboat still in existence."

The remains of the vessel sit less than 200ft from shore, with sections of the bow and stern visible at low tide.

The archaeological team concluded: "This is an opportunity for cultural tourism development that is rarely found. For this reason there is considerable promise that the development of the remains of the Myers Slip vessel could positively contribute to cultural tourism and dive tourism in St. George's Parish and Bermuda."

The April survey was the result of a planning application for a new marina. Shipwrecks over 50 years old are protected under the Historic Wrecks Act 2001, and developers WEC Limited were asked by the Historic Wrecks Authority to carry out an Historic Impact Assessment.

The Bermuda Maritime Museum and local divers also assisted in the survey.

HMS Medway was sold out of service in 1904 and local lore suggests it was used as a lighter to offload cargo from other ships. It was later used as a work and salvage vessel into the 1930s.

The ship eventually sank at Marginal Wharf and, after being raised by the US Navy, she was moved to Meyer's Slip. It is thought she was then used as a breakwater but another story suggests she was taken there for repairs but sank.