It decided 12 years ago to conduct a study into its members' views on sexuality. After years of research, a report, Pilgrimage of Faith, will be debated at the conference in Torquay. The Times has seen an early draft, which shows that, although some Methodists take the traditionalist line, most agree that the Church should be " welcoming and inclusive" and should not turn people away because of their sexual orientation.

The strongest disagreements were on how the Church, which holds marriage and chastity outside marriage as its ideals, should respond to sexually active homosexuals.

Some Methodists believe that full inclusion of sexually active homosexuals is unacceptable, according to the draft. But it found that others "are moving towards allowing the full inclusion of sexually active lesbians and gay men in stable and committed relationships, whilst not necessarily believing that same-sex sexual activity is what God intends".

The issue is significant for church unity because of the crisis in the Anglican Communion. The Church of England and the Methodists recently signed a "covenant" agreement and the two churches are moving slowly towards unity.

The report recommends continuing the Church's doctrinal and disciplinary standards for the ordained ministry, indicating that Methodists will not go as far as American Anglicans in ordaining men and women in gay relationships. But a key recommendation to be debated requests guidance "on how to respond to requests to conduct prayers or services of blessing for same-sex couples, particularly in the light of recent legislation on civil partnerships."

The Church's authorised worship book includes a liturgy for blessing the civil marriage of a heterosexual couple. If the conference approved, ministers could adapt it to bless the civil partnerships of gay couples.

The Rev Jonathan Kerry, convener of the working party on the issue and the Church's secretary for worship and learning, said: "Conference will have to decide what to do. These are the issues we need to face up to."

THE HOLY CLUB # The Methodist Church was founded by John (1703-1791) and Charles (1707-1788) Wesley. Their father was rector of Epworth in Lincolnshire

# While at Oxford University John joined a student group that held religious meetings, earning them the nickname "The Holy Club" or "Methodists"

# In 1738 John, by then a C of E priest, launched a preaching ministry, with small groups that studied and prayed together. The movement became a separate Church and grew throughout the 18th century

# The third largest Christian church in England, there are around 6,100 Methodist churches in Britain involving 330,000 people

# Methodists do not separate faith from life and believe the Church does not have to keep out of politics