The announcement comes just days after it emerged that the cost of building the museum has risen by more than £30m from £49m to £80.11m. The extra funding increases the Scottish Government’s capital contribution towards the project to £25m.

Deputy first minister John Swinney said the award underlines the government’s firm commitment to supporting the important regeneration project.

He said: “V&A Dundee will be an iconic statement at the heart of the Dundee Waterfront development. The signature building will create local jobs and contribute significantly to the regeneration of Dundee and its waterfront, giving the city and Scotland a world-class design museum and visitor attraction.

“The cornerstone of the ambitious Dundee Waterfront development, V&A Dundee is expected to generate more than 270,000 visitor engagements per year and contribute an additional £11.6m per year to the local and national economy.

“The £25m capital funding we have allocated to this iconic project underlines the Scottish Government’s firm commitment to working with the project board to ensure its delivery, success and long-term sustainability.”

Cabinet secretary for culture and external affairs, Fiona Hyslop, added: “V&A Dundee will be an incredibly important asset to the city and to Scotland as a whole in both cultural and economic terms. The project has already played a major role in the recent award of UNESCO City of Design status for Dundee. It will highlight Scotland’s exceptional design talent and illustrious design heritage, stimulate design innovation and attract hundreds of thousands of visitors from far and wide to its world-class exhibitions.

“The Scottish Government’s strong support for V&A Dundee builds on our extensive programme of investment in cultural infrastructure in recent years, including for exhibition and storage facilities for the National Museums, National Galleries and National Library in Edinburgh and new performance and rehearsal facilities for Scottish Opera, the RSNO and the National Theatre of Scotland in Glasgow.”

Professor Alan Dunlop, one of Scotland’s leading architects, described the escalating costs and delays in the project, an ambitious design by Japanese architect Kengo Kuma, as a “fiasco” and laid part of the blame on the organisers of the museum who chose the ambitious Kuma design, which has already been altered significantly.

He told The Herald: “It is a fiasco but it is entirely predictable, I am afraid.

“From the start it seemed obvious that the cost would rise. I feel sorry for Charlie Sutherland but they went for the superstar Japanese architect.

“You have to believe Dundee will have to make it work – it would be a disaster for the city if it does not. But it is a fiasco and it has to be asked whether the costs will go up again. It does not show Scotland or how we handle architectural competitions in a good light.”