More than 1000 jobs are set to be created after a former power station was chosen as the preferred location for a major new train factory.

Spanish firm Talgo plans to transform the 70,000 sq m plant at Longannet by 2021.

The company has been shortlisted for the contract to build trains for the HS2 line expected to open in England in 2026.

Talgo said extra jobs would be created in the planning and construction of the new factory.

Longannet was chosen due to good sea, rail and road connections, as well as the availability of skilled workers, the firm said.

Councillor David Ross, co-leader of Fife Council, said: "We, along with the Scottish Government and our partners, very much welcome this investment news, which is truly fantastic for Fife and testimony to the support that has been given by our communities and businesses in South West Fife.

"Fife has a strong and proud manufacturing tradition which continues today. The announcement by Talgo is further testimony to the attractiveness of Fife as a manufacturing base.

"I'm particularly pleased that all the hard work that has gone into the search for a new user for the Longannet site has paid off.

"This is great news for Fife and the whole of central Scotland."

A second preferred site, at Chesterfield, will serve as an innovation centre.

Carlos de Palacio, president of Talgo, added: "This has been a tremendously challenging mission for Talgo, and I have personally seen excellence in all corners of the UK.

It has been a difficult decision to make, as the quality has been so high in so many places.

'The establishment of a manufacturing facility at Longannet is a significant part of Talgo's future strategy."