IT houses some grisly and ­fascinating exhibits from the medical world over the last few centuries.

Now the UK's oldest surgical college, the Royal College of Surgeons of Edinburgh (RCSEd), has received a £2.7 million grant to radically upgrade its museum to retell its 500-year-old history to modern audiences.

The RCSEd, first incorporated as the Barber Surgeons of Edinburgh in 1505, is one of the oldest surgical corporations in the world and has been collecting museum artefacts since 1699.

The £2.7m grant from the ­Heritage Lottery Fund will be used to give a new lease of life to its Surgeons' Hall Museum, which has been open to the public since 1832, transforming it into a new world-class museum for Scotland.

As well as containing items such as a pocket book made from the skin of the murderer William Burke, the museum charts the history of medicine.

It includes in its archives a letter from Sir Arthur Conan Doyle crediting RCSEd Fellow Dr Joseph Bell as the main ­inspiration for the character of Sherlock Holmes.

The museum also includes surgical pathology artefacts including anatomical specimens and surgical instruments.

The revamp plans, titled The Lister Project after Joseph Lister, who promoted the use of antiseptic technique, will transform Surgeons' Hall Museum into a "modern, public museum", the RCSEd said.

There will be new displays and galleries, a doubling of the number of items on display, a new glass atrium and improved access.

The museum will also feature a 17th-century dissecting theatre and new education facilities.

Ian Ritchie, President of the RCSEd, said: "We are delighted that the Heritage Lottery Fund has chosen to support this ­exciting and important project.

"The promotion of patient safety and care has been at the heart of our college and its activities for over 500 years, inspiring advances in our profession and across healthcare.

"Our museum and library lie at the core of this heritage; through them we are able to highlight the achievements of the past, educate surgeons and the public about the development of our profession, and inspire generations of future surgeons."

In the 1800s the museum expanded to include the collections of Sir Charles Bell and John Barclay. It now includes a pathology museum, history of surgery museum and dental museum.

Colin McLean, head of the Heritage Lottery Fund in ­Scotland, said: "The Lister project will take the Surgeons' Hall Museum to a world-class level commensurate with its outstanding collections. Scotland's pioneering history of surgery will soon be a source of education and inspiration for visitors from home and abroad, while making an important contribution to our tourist economy."

Chris Henry, the College's Director of Heritage, said: "The museum collections are unique in their content and also in that they are displayed in the building originally built to house them nearly 200 years ago.

"The challenge of the Lister Project has been to produce a plan which will enhance the public space within the museum and ensure accessibility across all areas, whilst maintaining the integrity of the William Playfair-designed building in which the Museum is primarily housed."