Jigsaw Pre-school in Fareham, Hampshire, was asked to reduce the time children spent outdoors to just two half-hour periods a day after complaints from one local resident in September.
Environmental health officers said the pre-school could be served with a noise abatement order if it failed to comply. The order carries a 5,000 fine if breached.
Representatives from Fareham Borough Council and Hampshire County Council held a meeting last Thursday to discuss the situation.
Although no immediate action was taken to restore the nursery's normal outdoor play, Matthew Charters, county co-ordinator for early years and childcare, was hopeful that a 'mutually acceptable, long-term solution'
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