The Friends of Falls of Clyde may be steps closer to saving the 1878, four-masted ship from scuttling.

The National Historic Landmark is owned by the Bishop Museum, which has stripped the ship of masts and rigging in order to sink it.

The ship was saved once from scuttling in the 1950s, restored and put on display in 1971 at Pier 5 in Honolulu Harbor.

The Friends have met with the museum and provided necessary insurance to take charge of the ship, said Bruce McEwan, president of the Friends.

The museum has presented the group with terms for the transfer, and negotiations will likely be necessary, McEwan said.

"We're cautiously optimistic of saving the Falls of Clyde," he said.