The National Lottery cash, handed out by the Scottish Arts Council, brings the �8.7 million project to move the Guild to Greenock"s waterfont a step closer.

John Phillips, chairman of the Greenock Arts Guild, said: 'This is wonderful news for Inverclyde and it makes all the effort that went into planning and negotiation, over many years, worthwhile.

'This must represent the single biggest investment by the National Lottery in Inverclyde and will play a major part in the re-development of the waterfront by providing an outstanding leisure and cultural facility for the people of Inverclyde and beyond.

'I would like to thank all of my colleagues and our partners, Inverclyde Council and Riverside Inverclyde, without whose help, hard work and advice this outcome could not have been achieved.

'We still have to raise around 16 per cent of the total project budget of �8.7m but I am confident, with the continued support of local folk and businesses, we will have a wonderful new theatre and arts centre fit for the 21st century.' Iain Munro, co-director of arts at the Scottish Arts Council, said: 'Greenock Arts Guild is to be commended for delivering a wide range of arts activity in Inverclyde over the last 60 years.

'This new contemporary, purpose-built facility represents a major component of the plans for the regeneration of the waterfront and the local area.

'It will provide an exciting new platform for the Guild and partners to offer an increased range of high-quality arts activities and presents even more opportunities for the people of Inverclyde to see and take part in them.

'The Scottish Arts Council is delighted to support this important project with lottery funds and we look forward to a further 60 years of exciting arts activity. Congratulations to all the partners involved.' Councillor Jim Clocherty, Inverclyde Council"s regeneration convener, said: 'Greenock Arts Guild has such a prominent and important role in Inverclyde"s community.

'It is fantastic news the Arts Council has announced �2.6m for the relocations.

'The council is delighted to be working with the Guild and Riverside Inverclyde as we continue to take forward our regeneration agenda.

'This major relocation project will open up opportunities for Campbell Street redevelopment.

'It will also take the Guild"s civic benefits to the waterfront development and provide a strong focal point for the wider community.

'A lot of work still has to be done with a view to taking this forward.

'But the council has approved �2m towards this project and is pleased to be working towards the relocation of the guild to East India Harbour.'