The Waterways Trust has agreed "in principle" to merge with the planned new waterways charity which will be formed from the public body British Waterways next year.

Last year, the government announced that it would be moving British Waterways in England and Wales from being a public corporation to a new charity – similar to a new ‘national trust’ for the waterways. The transition is to be completed by April 2012.

Frances Done, chairman of The Waterways Trust, said: “We are delighted to be able support the new waterways charity in this way. Over the last 12 years we have learnt many lessons which will be important for the new charity. We have also seen success in a number of key areas including fundraising, building partnerships and attracting and working with volunteers, and look forward to building on these as part of the new waterways charity.

"We are delighted also that the work of the Trust will continue in Scotland building on our considerable achievements and focusing on the needs of Scotland’s waterways.”

In Scotland, where the waterways will remain in public ownership, the Waterways Trust will continue to work with British Waterways Scotland.

The full detail of the merger will be developed over the coming months. The Waterways Trust’s three museums, in Gloucester, Ellesmere Port and Stoke Bruerne, will be transferred as a group and continue to be managed together in the new charity.

The Waterways Trust has an income of £3.5m. As of February last year, British Waterways had an income of £255m - £149m earned income and £74m government funding.  Moving British Waterways out of the public sector and into the voluntary sector would create the 13th-largest charity by income and the fifth-largest fundraising charity according to a report last year by Bates Wells and Braithwaite, Compass Partnership and Think Consulting.