The National Galleries of Scotland have acquired a work by one of the world's most famous painters, Claude Monet.

The work, Etretat, L’Aigulle et La Porte d’Aval, is worth £700,000 and has been acquired through the government's Acceptance in Lieu scheme.

The galleries (NGS) describe the rare pastel work as a "subtle and atmospheric work, a quiet masterpiece produced by the artist at a crucial transitional moment in his career".

It has been in a private collection, that of Ms Valerie Middleton, since the 1920s.

The Acceptance in Lieu (AIL) scheme enables taxpayers to transfer important works of art and other heritage objects into public ownership.

The AIL scheme means that works of art that may be sold on the open market become part of the public domain.

Monet produced this work around 1885 at Etretat, famous for its rock formations such the Porte d’Aval and the Needle (Aiguille), featured in the National Gallery’s pastel.

He produced several versions in oil of the cliffs at Etretat and this period laid the ground for his ‘series’ paintings of the 1890s, culminating in his more famous Water Lily paintings.

Monet frequently used chalk and pastel to develop ideas for his paintings or to produce independent works of art. The NGS added in a statement: "Executed from a high vantage point, the pastel has an elegiac quality, expressed through the use of muted tones of blue, cream and brown, suggesting the approach of evening."

The National Galleries of Scotland has five works by Monet, all from earlier or later periods in his career.

Sir John Leighton, director general of the NGS, said: “This is the first work on paper by the outstanding French Impressionist Claude Monet (1840-1926) to enter the national collection.

"It provides a wonderful complement to the major paintings in oil by the artist already in Edinburgh and is an atmospheric composition of remarkable subtlety and interest.

"We are immensely grateful to everyone who has made possible its transference to public ownership through the AIL scheme."

Fiona Hyslop, culture secretary, said: “This Monet is a distinguished addition to the Scottish National Gallery.

"The Acceptance in Lieu scheme is a fantastic system that allows galleries and museums to be allocated important pieces for the public to enjoy, and I look forward to seeing this outstanding pastel piece in its new permanent home in Scotland."

Edward Harley, chairman of the Acceptance in Lieu Panel, added: “This superb example of Monet’s skill in pastels, every bit as compelling as his finest oil paintings, has been in a private Scottish collection for the last 80 years.

"I am pleased that the Acceptance in Lieu scheme has made it possible for it now to be enjoyed by all at the Scottish National Gallery.”