A development expected to create thousands of jobs in Edinburgh is to benefit from a £9.6 million investment, the Scottish Government announced.

The money will fund initial work at the site of The Haymarket, a £200m office, hotel and retail project in city's west end.

Developers Interserve and Tiger Developments estimate up to 3500 jobs could be created through the venture on derelict land next to Haymarket railway station.

The investment comes from the Spruce (Scottish Partnership for Regeneration in Urban Centres) fund, established with Scottish Government and European Regional Development Fund money.

It will help fund preparatory work at the four-acre site, including the strengthening of two railway tunnels and archaeological excavations.

Announcing the investment, Deputy First Minister Nicola Sturgeon said: "The Haymarket is one of the biggest commercial property projects to take place in Edinburgh and will substantially regenerate this part of the capital, transforming derelict land and creating thousands of jobs and opportunities for growth.

"The Scottish Government's investment through the Spruce fund has acted as a catalyst for the regeneration of this site. Without this investment crucial remedial work could not go ahead.

"Once complete, this fantastic multi-purpose site will provide much needed, high-spec office and retail space for the city as well as a new hotel for visitors. This will allow Edinburgh to continue to compete effectively with other large cities - and help to attract companies from across the globe."