SeaFrance workers have spurned a lifeline from French president Nicolas Sarkozy, sending the ferry operator closer to extinction.

The president had urged SNCF, the owner, to hand over money set aside for redundancy to the workers' co-op to fund a buyout to the tune of some £40m.

According to French reports, Mr Sarkozy also suggested that SNCF buy the ships, now moored in Calais for fear of damage by angry workers, and rent them to the co-op.

But trade unions dismissed the plan on the grounds that it was surrounded by too much legal uncertainty.

It now seems that a French court will be left with no alternative but to wind up the business on Monday, killing off any chance of saving around 700 jobs in France and up to 200 in Dover.

Richard Ashworth Conservative MEP for the South East said: "SeaFrance had nowhere else to turn, and the trade unions in France have effectively killed off the lifeline thrown to them by President Sarkozy.

"When the trade unions had to put up their own money to save SeaFrance they refused to do this, and wanted a bailout from private investors and the French state.

"This is now a fait accompli, on Monday the Paris courts will have no choice but to close SeaFrance."

Cross-Channel rival P&O had earlier threatened legal action if public subsidy propped up SeaFrance.