A long-lost slice of silent film history has been found in a disused old cinema.

The 1923 film Love, Life and Laughter, which turned up in the building in a small Dutch town, was made by director George Pearson and starred Betty Balfour.

Only one other film by Pearson survives in its entirety and Love, Life and Laughter was included in the British Film Institute’s most-wanted list of lost films.

It was discovered by experts at EYE, the Dutch film museum, after a haul of old film cans was found in the cinema building in the town of Hattem which was due to be redeveloped.

Bryony Dixon, silent film curator at the BFI archive, said: “This is a major discovery featuring Betty Balfour, the biggest female star of the silent period. It is also a rare survival of the work of George Pearson, one of Britain’s most talented directors of that time whose First World War drama Reveille is another film on the BFI’s most-wanted list.

“Contemporary reviewers and audiences considered Love, Life and Laughter to be one of the finest creations of British cinema; it will be thrilling to find out if they’re right. We hope to be able to acquire some material from our colleagues at EYE soon so that British audiences can have a chance to see this exciting discovery.”

Balfour, who died in 1978, plays a chorus girl called Tip-Toes in the film who dreams of becoming a music hall star.

She made her name playing a comic character called Squibs in a popular series of films, also directed by Pearson, which were huge hits in Holland as well as the UK.