A health board is at risk of a £5million overspend after its bill for medical locums soared in the current financial year.

The warning came after NHS Highland's total bill for the first three months of 2015-16 year topped £3.3million.

Now the board's finance director has forecast an annual overspend of

£5.1million on medical and dental staff if current trends continue.

In a report that will be presented to the health board on Tuesday, Nick Kenton said he believes that, if plans to save cash materialise, the board can break even on its revenue budget.

His report states: "There is a risk that the board may not meet its year-end target of breaking-even on revenue - this risk has been quantified in the region of £5m.

"My view is that a break-even revenue position can be achieved, subject to delivery of cash-releasing benefits from savings plans and transformational projects."

Mr Kenton goes on to advise the board that any actions to reduce the use of locums could have a "significant impact" in reducing the forecast overspend.

He said: "Work is ongoing to look at the arrangements with locum agencies with a view to obtaining a better price for locums provided."

Work to manage the demand for locums was being carried out on an ongoing basis, he said.

Mr Kenton's report indicates that the board underspent its capital budgets, for the period from April to June, and is on course to break even on them at the end of the financial year.

Board members will hear of the continuing recruitment problems at rural general hospitals in the Highlands.

Anne Gent, director of human resources, has written a report outlining how the vulnerability and sustainability of rural hospitals continues to be a significant issue for NHS Highland.

The board will be asked to approve a workforce development plan for 2015-2016 which aims to address the problems.