shipwrecked
The Honduran-flagged Demetrios II ran aground on rocks just offshore from the Paphos village of Chlorakas in a storm in 1998,
It was hoped that state funding could be found to scuttle the ship and create an underwater scuba diving attraction for holiday visitors.
But a spokesman for the marine tourism project warned: "If attempts were made to move and sink the ship, it could end up as a pile of dust, the rust is that bad."
The Paphos shipwreck, built in 1964 in Hamburg, is about 60 metres long and weighs more than 900 tonnes. Demetrios II was on route to Limassol, Cyprus, when it ran aground and the eight strong crew were lifted to safety on a British military helicopter.
There still remains the possibility of the shipwreck detaching itself from the Paphos rocks in rough seas and ending up on the beach anyway.
It does not mean an end to the plans for an artificial reef at Paphos though. The Department of Fisheries has asked for alternative sites to create a man-made reef off the Paphos holiday coastline.
Latest suggestions include a new site between Paphos airport and Venus beach. The reef includes attractions for Paphos holiday divers, snorkellers and swimmers.
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