A project to restore a famous Victorian castle on the island of Lewis has took another major step forward with Highlands and Islands Enterprise (HIE) announcing £1.7 million funding to complete the work.

Led by the Western Isles Council, the £18 million project involves the transformation of the category A listed Lews Castle building in Stornoway, which is planned to deliver significant cultural heritage and economic benefits for the Outer Hebrides.

It was built for Sutherland born (Sir) James Matheson who co-founded the Jardine Matheson company in Canton in 1832 and made his fortune from the Chinese Opium trade. In 1844 he bought Lewis for £190,000.

It became home to the island's further education college for a period, but it has now been closed to the public for around 20 years. It is being fully restored to provide an innovative museum, a state of the art archive for the Outer Hebrides and a unique hospitality venue.

A glass roofed courtyard links the restored Lews Castle to the new museum, archive and learning spaces. The museum has a strong Gaelic ethos with Gaelic led bilingual interpretation throughout the galleries. Permanent displays including six of the world famous Lewis Chessmen will be a highlight and opportunities for temporary or touring exhibitions will be provided within the special exhibitions gallery.

This third phase of the project will include building work to the upper floors of the castle. These works will secure the private sector operator who will complete fit-out works and operate as high quality accommodation for the islands.

Gordon Macdonald, HIE's Senior Development Manager, said: "This is a very exciting project which promises to develop the potential of the Lews Castle as both a cultural and economic asset and will benefit the islands' communities by creating employment, increasing tourism and further developing the Outer Hebrides as a world class destination."

It is planned to open the new museum and provide public access to the restored ground floors of the Castle in October.

Council leader, Angus Campbell, said: "I am delighted that the project has reached this stage and I would once again like to thank all our funding partners. This is very good news for the Western Isles and the castle will provide a unique hospitality venue and an enhanced, islands wide heritage service."