AN ELITE naval ship entombed at the bottom of the Solent for 250 years is to be excavated in a new £2 million project.

In one of the last acts of his sinking career as chancellor, George Osborne has invested huge sums to discover the secrets of HMS Invincible.

Artefacts from the ship, which sunk off the coast of Portsmouth in 1758, are set to go on public display for the first time.

The scheme, funded by fines from the Libor-rigging banking scandal, will help wounded veterans and disadvantaged youngsters.

English Heritage named the wreck among its 10 most at-risk sites in 2013 as shifting sands threatened to cause permanent damage. It was listed as a historic wreck site in 1980.

The Maritime Archaeology Sea Trust, which will run the project, says the wreck will reveal secrets of live aboard Royal Navy ships of the ship.

"The excavation fills an important gap chronologically between the Henry VIII’s Mary Rose and Nelson’s HMS Victory and is one of the most complete and best preserved warships of the mid-18th century," said the Maritime Archaeology Trust, a separate body.

The ship is not to be confused with another HMS Invincible, which sank in 1916 during the Battle of Jutland.

Unveiling his investment today, Mr Osborne said: "The wreck of the HMS Invincible is an invaluable part of the UK’s proud maritime history and it is important we work to save as much as possible.

"This hugely worthwhile project will support military veterans, serving personnel and disadvantaged teenagers to learn new skills and put artefacts from the wreck on public display for the first time."