The museum, at Thorpe End, has been doubled in size thanks to a £1.1m extension funded by the Heritage Lottery Fund and Leicestershire County Council.

A community archive room and additional gallery have been created on the ground floor with a multi-purpose community room on the first floor.

Staff are now starting work on a major display called Town and Country in the 21st Century for the new gallery which is due to open in late spring 2010.

Curator Jenny Dancey said: "The musuem has a real wow factor. We started with a vision and high hopes of what could be achieved and the finished building has exceeded our expectations.

"It's a fantastic achievement given the constraints of the site. We now have double the space and a building which is open, light and airy on the inside but which is discreet from the outside."

The additional space is a big boon to the museum's various community groups who are working on a number of projects which could feature in the new Town and Country gallery.

Jenny said: "We are working on a contemporary record of life in the borough which to a large extent mirrors what is happening across rural Britain today.

"It will touch on lots of hot topics to do with the future of village pubs, shops and post offices, employment, access to services, housing affordability and so on, and give visitors a chance to think, reflect and debate and perhaps reconnect with the countryside, too.

"We are looking forward to welcoming more visitors to Melton as well as receiving school and community group visits."

The museum reopened with some sparkle as staff ran seasonal craft activities for children. Visitors can view the museum's impressive collection, a new Melton A to Z feature and a stunning new photographic exhibition.

Among the first people to visit the new-look museum were Mollie Marchington (6) and Katie Harvey (5) (pictured) who took part in various Christmas craft activities.

Judy Shepherd, education support officer, said: "The children were able to decorate baubles, make snowmen puppets, model santas and snowmen and design their own cards.

"We were delighted by the turnout given we had closed for 12 months, and many parents took the opportunity to look at the new facilities.