In its heyday, with its electric lighting, state-of the-art showers and rare orchestrion, this onc- luxurious late Victorian retreat was frequented by aristocrats and royalty.

But, after years of neglect, the crumbling treasure house that is Kinloch Castle on the Isle of Rum is in such a sad state of decline that it remains closed to the public.

Now Kinloch Castle Friends Association (KCFA) has revealed that it is in new talks about its restoration plans with Historic Environment Scotland (HES) and Scottish Natural Heritage (SNH).

The association said at the end of last year that it would appeal an SNH decision to reject the application for asset transfer of the A-listed Scottish baronial mansion, which was built by Lancashire mill owner Sir George Bullough.

However, Catherine Duckworth, association secretary, has revealed that, following fresh talks with the government bodies, they will not be going through the lengthy appeals procedure and feel positive there is a new way forward.

Having taken advice from SNH and HES, Mrs Duckworth said the group was hoping to bid to become the castle’s beneficial owner – a legal title which means it would be responsible for raising the £6.9 million to fund the first stage of the restoration plans for the landmark and its contents.

“It’s all been a bit of a roller coaster,” she said.

“You think it’s going OK and then it’s not, but we are now pursuing the beneficial ownership route and looking for funding from various outside sources.

“We had a meeting with Historic Environment Scotland and they were really very supportive and said that in the last two years we have moved things along enormously by showing that the castle was repairable, that there could be a future for it that was viable.”

She added: “For years they have talked about Kinloch Castle being Scots baronial but HES have now said it is important for different reasons, after all this time.

“There are examples there of art nouveau and the Arts and Crafts Movement, which was a recognition of the individuality of the 19th century, of making things by hand.

“Kinloch has beautiful stained glass windows and brass door plates.”

One report to SNH had estimated that it would take up to £13 million to restore the building.

But reports for the friends group show that initial work to make it wind and watertight, and renew the 52-bed accommodation in the old castle hostel, would cost around £6.9m.

Representatives of the association are meeting with Scottish and Westminster politicians to see what help they can give to the plans.

A working party of 22 group members will meet at the castle at the end of next month to discuss the next step.

Commenting on the proposals, a spokesperson for Historic Environment Scotland said: “We have been involved in discussions with Scottish Natural Heritage (SNH) and Kinloch Castle Friends Association about options for the future of Kinloch Castle.

“We recently met with the Kinloch Castle Friends Association to provide them with advice on funding and to suggest other bodies who can provide more specific advice on putting together an alternative project proposal.”

The spokesperson added: “Kinloch Castle is category A -listed as a nationally-important example of late Victorian architecture and we look forward to continuing these discussions about finding a future for it.”

A spokeswoman for SNH said: “We look forward to continuing discussions with KCFA to look at new ways to secure Kinloch Castle’s future. “We are committed to working together to create greater economic development opportunities for Rum and its residents.”