THE National Rail Museum (NRM) in York may step in to save the Flying Scotsman for Britain if it is auctioned off and looks set to leave the country.

Museum bosses said today they were closely monitoring the future of Britain's most famous steam loco, following reports that it might be sold and end up at a Japanese or American theme park.

Andrew Scott, head of the museum, said the NRM would have to consider its role in the train's future, if it went on the market.

"In broad terms we would be more than happy to have the Flying Scotsman as part of our national collection in York," he said.

Mr Scott's comments came after reports that Flying Scotsman PLC - the loss-making private firm currently funding the engine - held talks over the possibility of auctioning the engine.

Mr Scott said: "I do not have any evidence that there's any overseas interest in acquiring the Flying Scotsman.

"It's only likely to go abroad if the foreign interest outweighs the UK interest and I doubt very much that will happen. The Flying Scotsman is a national icon."

He said the NRM would be happy to house the loco, but only if it was put up for sale.

"That's not to say we are desperate to wrest it from the hands of a private owner, if they are able to care for it.

"It's really too early to say what we would do, but we are keeping a watching brief and monitoring the situation."

The Flying Scotsman was a regular York visitor when it ran from London to Scotland from 1923 to 1963. The first steam train to notch up an official speed of 100mph fell into private hands after being pulled from service.

Updated: 10:49 Tuesday, November 25, 2003