The linear stability of an inviscid two-dimensional liquid sheet falling under gravity in a still gas is studied by analysing the asymptotic behaviour of a localized perturbation (wave-packet solution to the initial value problem). Unlike previous papers the effect of gravity is fully taken into account by introducing a slow length scale which allows the flow to be considered slightly non-parallel. A multiple-scale approach is developed and the dispersion relations for both the sinuous and varicose disturbances are obtained to the zeroth-order approximation. These exhibit a local character as they involve a local Weber number Weη. For sinuous disturbances a critical Weη equal to unity is found below which the sheet is locally absolutely unstable (with algebraic growth of disturbances) and above which it is locally convectively unstable. The transition from absolute to convective instability occurs at a critical location along the vertical direction where the flow Weber number equals the dimensionless sheet thickness. This critical distance, as measured from the nozzle exit section, increases with decreasing the flow Weber number, and hence, for instance, the liquid flow rate per unit length. If the region of absolute instability is relatively small it may be argued that the system behaves as a globally stable one. Beyond a critical size the flow receptivity is enhanced and self-sustained unstable global modes should arise. This agrees with the experimental evidence that the sheet breaks up as the flow rate is reduced. It is conjectured that liquid viscosity may act to remove the algebraic growth, but the time after which this occurs could be not sufficient to avoid possible nonlinear phenomena appearing and breaking up the sheet.