An under-threat bus service in East Lothian has been saved after a rival transport company unveiled a rescue package.

Earlier this year bus operator First Scotland East announced that it was withdrawing services in East Lothian, putting 90 jobs at risk.

The cutbacks were going to be implemented from August 14, affecting routes including Edinburgh and North Berwick, Dunbar and Haddington.

The service is set to continue, however, after a rescue package was put in place by East Coast Buses Ltd, a wholly-owned subsidiary of Lothian Buses Ltd.

The firm will buy First Scotland East's Musselburgh and North Berwick properties, with all staff having the opportunity to be transferred.

It announced on Saturday that it will also make "significant investment" to improve the services and refurbish the Musselburgh garage.

The number of vehicles will be increased, while there are plans to invest in a new fleet of vehicles.

Richard Hall, managing director of Lothian Buses, said: "This deal will protect key bus services and jobs but the benefits go much further than that.

The residents, workers and businesses of East Lothian rely on buses for their daily lives and well-being. We are pleased to be in a position to take on and continue providing these vital services and be part of the local economy."

Paul McGowan, managing director at First Scotland East Ltd, said: "Throughout our consultation into the future of bus services in East Lothian our priority was to safeguard jobs and protect key services. I am therefore pleased that we have achieved that through the proposed sale to Lothian Buses.

"I'd like to thank all my colleagues in East Lothian for their hard work and loyalty over the years. We will be fully supporting them as they transfer to their new employer."

The news was also welcomed by Humza Yousaf, minister for Transport and the Islands, who described the buyout as an "excellent outcome".