Just when it looked as if the Cheltenham Festival would survive the threat posed by outbreaks of foot and mouth disease, the highlight of the National Hunt racing season was thrown back into doubt last evening with news of a suspected case of the disease three miles from Lambourn, in Berkshire.

The Lambourn area - although some 50 miles from Cheltenham - is the main National Hunt training centre in Britain and were the outbreak to be confirmed, it would almost certainly spell the end for the Festival, with the participation at the meeting of Irish horses currently ruled out and the French in doubt.

"The Ministry of Agriculture has confirmed that there is a suspected case in the Lambourn area," said Peter Walwyn, chairman of the Lambourn Trainers' Association. "It has not been confirmed but it is obviously a big worry."

And Simon Claisse, clerk of the course at Cheltenham, last night reasserted the position of officials should the case be officially confirmed.

"We've said from the outset that if another major training centre was hit by the disease, then that would be a major blow to the chances of the meeting going ahead," he said.

Ben Gill, president of the British National Farmers Union, told Channel 4 News: "We do not know where this virus is in Britain. Already it would be totally unwise for farmers to go to the meeting. All we've asked for is another seven-day stand-off. We need to know whether the disease is under control.

"This suspected case illustrates the fear that we have. We do not know where the next case is and it could be next to a stable that sends a horse to a race-meeting."

Meanwhile the Government here has extended its ban on livestock movement to include horses, although special travel permits can be issued if necessary.

A Department of Agriculture spokesman said last night: "The ban already exists for certain species and we feel it should be extended to horses. It will begin on Thursday morning."

On a brighter note, a solution to the Curragh gallops crisis has been found and the 1,200 horse population can once again be exercised at racing's headquarters.

"We've agreed a code of practice with the Department of Agriculture to allow controlled, limited access to the gallops," said the Curragh racecourse manager, Jason Morris.

The horses will be confined to working the nearest all-weather gallop to their yard from 7 a.m. to 1.00 in the afternoon.

Should Cheltenham still go ahead, Ruby Walsh was yesterday booked to ride the current Tote Gold Cup favourite, See More Business.

Mick Fitzgerald won the 1999 Gold Cup on See More Business but has been claimed to ride Marlborough, and See More Business's trainer, Paul Nicholls, said: "Ruby has ridden for us before and I am delighted he has been booked. He will come down and ride the horse over the coming weekend and possibly stay until the meeting."

As well as Walsh, three other Irish-based jockeys plan to attend the Cheltenham Festival. Barry Geraghty, Fran Berry and David Casey, along with Walsh, confirmed they do not intend to immediately return to Ireland afterwards.

The Irish jockeys look like they could be accompanied by many race-goers as the Department of Agriculture request for punters and race fans not to travel to the festival is currently receiving less than full support, with one of the country's main travel operators reporting just a 10 per cent cancellation rate.

The Carlow-based Tully Travel company had been planning to handle the arrangements of 1,500 Cheltenham fans and have seen a minimal drop off in their festival trade.

"We've had 85 packages cancelled and one corporate group, so as of today our cancellations are at about the rate of 10 per cent," spokesman Joe Tully said yesterday.

French trainers were yesterday given a glimmer of hope regarding sending horses to the Cheltenham Festival when their authorities gave the go ahead for racing to resume in their country.