The discovery was made during archaeological works at what will be the first Virgin Hotel in Europe, construction work on which will begin within weeks.

Other items discovered during the works included medieval rubbish pits, wells and leather, a 13th century trebuchet ball and an early cannonball.

A sequence of buildings spanning the last millennium - including hearths, wattle panels and structural timbers - were unearthed, alongside shoes, textiles, knives, jewellery and clothes.

A costrel - a traditional early drinking vessel made of leather - was also recovered.

Because of the nature of the location, the archaeology has given a unique insight into the early origins of the city. The work has been undertaken by AOC Archaeology, overseen by specialist consultants CGMS, working closely with city archaeologist John Lawson who has declared the finds, “of national importance and one of the most significant medieval archaeological excavations undertaken recently in Edinburgh”.

Raul Leal, Virgin Hotels CEO, said: “We always knew that India Buildings was a special place and a very special development for Virgin Hotels, though I’m not sure we could have guessed just how amazing it really is.

“A unique insight has been gained into life in Edinburgh and the city’s development over nearly 1000 years.

“While we’ve been keen to get on with the India Buildings development, we know how important it is to take advantage of an opportunity like this to shine a light on the lives and history of the city’s earliest residents and communities.

“Virgin Hotels is proud to have played a part in work of such national importance.

“We look forward to continuing to work closely with the city through to the hotel opening, and we will look at ways we can inform our guests of the rich history beneath the rooms in which they will sleep.”

The hotel, in the Old Town, is expected to open in 2021.