A £1.9 million funding package has been announced to help build the first new village on Skye for more than a century.

It is a vision being pursued by the island's Gaelic college Sabhal Mòr Ostaig (SMO), which this year celebrates its 40th anniversary.

It has received the financial support to develop a 1050 square metre building, which will provide space for up to 20 new businesses and offer accommodation for 20 staff at its Kilbeg Village site on the Sleat Peninsula.

The development will support up to 60 jobs in the construction sector including six youth apprenticeships and more than 20 full-time positions within the new development.

Construction work will get under way this month to develop the £6.1m project, which is due to be completed by the beginning of 2015.

The work is a central part of a long-term project to build a new conference centre, community sports facility and mixed tenure housing for the people of Skye, in what will effectively be the new village of Kilbeg.

The announcement was made by Deputy First Minister Nicola Sturgeon, at Glasgow Caledonian University.

She said investment in projects such as this one at SMO was absolutely key when it comes to stimulating economic growth throughout Scotland.

She said: "This new building will provide much- needed facilities for the people of Skye, which will boost its reputation on a national level and help to attract more investment to the area.

"Of course, community involvement is integral to the success of the design and delivery of local economic and social regeneration initiatives."

SMO's chairman, Sheriff Roddy John MacLeod, said: "It is not every day that an institution gets the opportunity to pursue such an iconic development which will not only 'future-proof' SMO's own estate development needs but will also, in partnership with the local community, create the first new village to be built on the island in more than 100 years."