The firm in charge of the world-renowned Edinburgh Hogmanay celebrations for 24 years has lost the contract to host the event.

A statement for Unique Events said it was "deeply disappointed" after losing out on the tender process for an event "which we created".

The company, which last week won Scotland's Best Cultural Event/Festival for its Hogmanay event at the Visit Scotland Scottish Thistle Awards, claimed it was unsuccessful due to "the proposed pricing of the contract".

Increased costs and a near 20% reduction in subsidy from the council were mooted as additional reasons for losing out on the tender.

Hogmanay is a council-operated venture and only forms part of Edinburgh's Winter Festivals programme which will now be run by Underbelly, who have been in charge of the city's Christmas events since 2013.

The firm's statement read: "Unique Events are deeply disappointed in the recent Tender process held by City of Edinburgh Council with regard to Edinburgh's Winter Festivals and hugely saddened by the decision not to continue with our services as producers of Edinburgh's Hogmanay, a festival which we created and have produced for over 24 years.

"Edinburgh's Hogmanay is a Council owned event, and the process of the Tender is to provide the most 'economically advantageous' outcome for the city, but this should not be at the expense of the quality and safety of the festival.

"Despite winning on quality, programme and experience, Unique were unsuccessful due to the proposed pricing of the contract.

"We believe the almost 20% reduction in council subsidy, (compared to cuts of around 5% to other Festival grants) coupled with dramatically increased event costs present a very real threat to the Festival.

"We are deeply concerned for the future of Edinburgh's Hogmanay and believe that Scotland's New Year Festival runs the risk of losing its international status."

Since the first Hogmanay event in 1993 audiences have grown to around 150,000 people and more than £40m is generated by the local economy from visitors around the world.

While the Edinburgh International Film Festival celebrates its 70th anniversary, Unique also said it was "heartbroken" to miss out on the opportunity to provide a programme events marking their own 25th anniversary.

The statement added: "In a year filled with celebrations and special events we are obviously heartbroken not to continue to produce Edinburgh's Hogmanay, delivering the world-class 25th Anniversary programme which the festival, city and our audiences so richly deserve.

"If last year's hugely successful event is to be the last great Edinburgh's Hogmanay, we certainly went out with a bang, producing one of the best ever festivals and leaving our audiences and the city with unforgettable memories.

"Thank you to everyone who has been part of this incredible Edinburgh's Hogmanay journey. Unique Events look forward to continuing to produce more quality events for Scotland in years to come and will be announcing exciting new projects very soon."

Despite the intial fears, Underbelly's Ed Bartlam and Charlie Wood, confirmed the plans would be expanded.

A statement said: "We're absolutely delighted to have been given the opportunity to produce Edinburgh's Christmas and Hogmanay. We've hugely enjoyed helping to develop Edinburgh's Christmas for the last four years and we couldn't be more excited about the next three years.

"We're honoured to be building on the extraordinary work and success of Pete Irvine and Unique Events since the start of Edinburgh's Hogmanay. We look forward to announcing our plans for both events in due course.

"We can however confidently say that our plans for both events are exciting and hugely ambitious and will see an expansion and growth of Edinburgh's Winter Festivals rather than any diminishing of them.

"Watch this space...."

The decision was made at a finance and resources committee meeting on Thursday.

Councillor Richard Lewis, Edinburgh's Festivals and Events Champion, added: "Edinburgh's winter festivals provide the city and Scotland with unrivalled promotion and shape the Capital's reputation as a great place to live, work and visit.

"Last year, the combined economic impact of the events were estimated at £160m demonstrating the huge importance these events place on the success of Edinburgh's winter economy.

"The appointment of these contracts is confirmation for the city that, despite the financial pressures facing the Council, these important events will continue to operate for the benefit of the people of Edinburgh and our many thousands of visitors.

"I am sure Underbelly's activities will build on the huge success of Edinburgh's winter festivals to date. Along with Council officers past and present, I wish to thank Unique Events for continuously providing the city and Scotland with Edinburgh's Hogmanay celebrations over two decades."