The local authority, which reached an agreement for the Waterfront site with National Grid on Tuesday, said development of this site is critical to its plans to deliver a vibrant city quarter and accelerate the delivery of new homes for people on low and middle incomes.

Development of the 66-acre site stalled over the last decade and the council has been successful in negotiating with National Grid over the last 12 months to unlock the site’s potential.

The site also includes an iconic last remaining gas holder in the city and the former Granton railway station.

Depute leader Cammy Day said: “This is a hugely important site for the city’s economy and its acquisition is a key milestone in our plans to make Granton’s Waterfront a great place to live and work. It will also make a significant contribution to our ambitious plans to build 20,000 affordable and low-cost homes over the next decade.

“Despite enormous global challenges the city’s economy and population continues to grow and we want everyone in the city to benefit from this. I look forward to working with the local community, partners and colleagues from Scottish Government to shape our plans to develop the site.”

Benjamin Gaunt from National Grid Property said: “National Grid has been working in partnership with City of Edinburgh Council for many years to develop Granton Waterfront, successfully bringing a number of projects in the area to fruition. We are delighted the council has acquired Granton Waterfront and will be taking the site through to the next stage of development.”

Over the last decade the council and its partners have invested over £309m in the regeneration of North Edinburgh, delivering nearly 2,200 homes, retail, a new school, Craigroyston Community High and a new health and social care hub, the Pennywell All Care Centre.