The principal of Edinburgh College has insisted its future is positive despite a new report revealing it was £5m in the red.

Annette Bruton said the report was welcome as it provided an overview of the changes the further education sector has been through over the last few years.

She also projected the college should be back in a "break-even position" within the next three years.

The college's deficit increased from £1m in 2014 to £5.1m the following year, according to the Audit Scotland's survey on the future of Scotland's colleges.

In the report, auditors said while the overall financial health of the college sector was "relatively stable", financial performance had deteriorated, with four colleges - Edinburgh, Moray, North Highland and Lews Castle - facing challenges.

Ms Bruton said: "We're aware of our issues and we've been addressing them already.

"In December 2015, we launched a plan to change our curriculum and financial models, which will ensure we can provide what students, businesses and our economy needs.

"Our financial issues are largely the result of the curriculum not being the right shape or size.

"Having the correct curriculum will secure our long-term financial sustainability and this extensive reshaping process has begun."

Ms Bruton said recent changes to student recruitment process and curriculum had meant the college had already exceeded its target for offers made and accepted by students this year.

She added: "Like the rest of the sector, we are facing challenges but our plans for change, which continue to put students at the centre of everything we do, are well under way."

"The new academic year has begun really positively."

Caroline Gardner, auditor general for Scotland, said the Scottish Government, the Scottish Funding Council (SFC) and colleges needed to work together to improve their understanding of the demand for college courses and "create long-term plans for how they will commit finances and staff to meet future need".

Edinburgh College was formed in 2012 following a merger of Telford, Jewel and Esk and Stevenson colleges.