There is reason for "substantial encouragement" that the stricken Ferguson shipyard will be saved, according to the First Minister.

Administrators have set a deadline of 5pm today for interested buyers to make an offer for the Port Glasgow business - the last commercial shipbuilder on the River Clyde.

Ferguson, which dates back to 1902, went into administration at the end of last week with the loss of 70 jobs following ''significant cashflow pressure'' in recent months.

Alex Salmond is due to visit the shipyard to speak to employees tomorrow.

Speaking during First Minister's Questions at Holyrood, he said he was encouraged both by the determination of the workforce and positive statements made by the shipyard administrators.

Blair Nimmo, joint administrator and head of restructuring for KPMG in Scotland, earlier said he sensed a ''desire to see its heritage maintained''.

Mr Salmond said: "I can assure everyone in this chamber the Scottish Government is doing, will do, everything within our power to ensure the continuation of shipbuilding at Ferguson's.

"I think, although we are not there yet, although there will still be more anxious hours and anxious days for the workforce at Ferguson's, that we have reason for substantial encouragement, and that encouragement is founded and based, not just on the determination of this Government and the support of everyone in this chamber, but the resolve and the resilience of the shipyard workers themselves."

Duncan McNeil, Labour MSP for Greenock and Inverclyde, said the closure had been brought about by the failure to place further orders for commercial ferries with the yard.

Mr Salmond responded: "There have been substantial orders placed with this yard and substantial opportunity to give them the new generation of environmentally-sensitive ferries, and we have great hopes that we'll arrive at a situation where that can continue under new ownership."

Talks have already been held between the administrators and several interested parties which could allow shipbuilding work to start up again.

The owners of McGill's Buses, Sandy and James Easdale, have declared their interest in the firm.