The 4th Duke of Fife, David Carnegie, took Aberdeen and Aberdeenshire councils to the Court of Session over his plans to build a new town after they demanded contributions of £7.5 million in a legal battle that has been running since 2013.

The plans for up to 8,000 new homes would make the development the largest in Scotland for decades.

Lawyer’s for Mr Carnegie’s Elsick Development Company said the company was already investing in Chapelton of Elsick and should not be liable for payment in respect of other projects.

The Lord President, Lord Carloway ruled in favour of the company last month and the fee, which the councils had earmarked for a new bridge and train station, was reduced to £287,000.

But it has now emerged that local authorities plan to appeal the decision at the Supreme Court.

Aberdeenshire Council’s infrastructure chairman, David Atkinson, said: “The Court of Session’s decision was very disappointing and it was right that the strategic development planning authority took time to consider their response.

“However, the issue of funding for infrastructure in the north-east is of such importance that it is right and proper that the authorities seek to appeal this decision to the Supreme Court.”

Aberdeen City Council’s finance convener, Willie Young added: “We recognise the decisions made by law lords and we hope that they respect our right to leave to appeal to the highest court in the land – the Supreme Court.

“This has huge implications for council tax payers of Aberdeen, it’s a vast amount of money we’re talking about. This will have repercussions for the whole of Scotland, that’s why it’s so important.”