The Scottish Government has said the work of Highlands and Islands Enterprise (HIE) should be protected as it sets out plans to reform Scotland's skills services.

It has proposed the creation of single national body responsible for coordinating the work of both HIE and Scottish Enterprise, following a review of the groups.

The government has also advocated the creation of a similar body representing the south of Scotland.

Concerns had been raised about a potential merger of Scottish Enterprise and Highlands and Islands Enterprise, which promotes economic growth in the Northern Isles, Western Isles, Highlands, Moray and Argyll.

Economy secretary Keith Brown said: "We are proud of our enterprise and skills agencies, and in recent years their efforts have contributed to real improvements in our economic performance.

"But we know that further improvement is required - our ambition is for Scotland to rank among the top performing OECD nations for productivity, equality, sustainability and wellbeing.

"Since the review was announced, the EU Referendum result has made the economic context more challenging. It requires that we renew our focus and prioritise our efforts.

"This review has focused on how we can build on existing strengths and successes to further improve the enterprise and skills support system in Scotland."

The Scottish Government, which published the first phase of its findings on Tuesday, also said more support should be offered to businesses in areas like innovation, productivity, digital, and exporting.

Angus Campbell, leader of the Western Isles Council, said he would be keen to see Scotland's islands represented on the national statutory board.

"I would hope that any restructuring takes account of the original principles of HIE - that is to address the particular needs of crofting areas," he said.

"I look forward to seeing more detail on this at a time when the islands face particular economic challenges which are only going to get tougher as we move towards Brexit.

"I don't think extra layers in the decision making process are not necessarily the best way forward for the Islands where our priorities and challenges are very different from those of other parts of Scotland.

"If there is to be a statutory board then at the very least there should be a commitment to island representation."

Scottish Conservative shadow secretary for the economy, Dean Lockhart, added: "While I am pleased that the SNP have followed our lead once again in suggesting a south of Scotland enterprise agency, a lot more needs to be done.

"Our enterprise agencies are already doing a great job in encouraging business growth, but as Audit Scotland have said, it's the Scottish Government that is holding them back.

"They need far more support in the work that they do, and a clear plan on exactly how the Scottish Government want them to deliver its economic strategy.

"With Scotland's economy lagging behind the rest of the UK it's time the SNP came up with a coherent strategy on how they want to stimulate economic growth."

Northern isles Liberal Democrat MSPs Liam McArthur and Tavish Scott said they plan to seek further assurances about the roles of Highlands and Islands Enterprise.

John Finnie, rural communities spokesperson for the Scottish Greens, said: "The south of Scotland and the Highlands and Islands are unique regions and deserve dedicated development agencies to address their challenges and make the most of their opportunities.

"I'm pleased to see a continuing commitment from government to protect the north's agency and the creation of a new service for the South will be a welcome boost for a region too often overlooked by government."

But business body FSB said the next stage of the Scottish Government's review should focus on offering help to small businesses.

Scottish policy convener Andy Willox said: "Scotland needs nimbler, better co-ordinated help for businesses.

"Many of the worthy changes announced today focus on sorting out the governance of our economic agencies. A top measure of their success should be the experience of the ordinary Scottish business.

"Most firms in the Scottish borders and south west will welcome the news that a new body is to be established to give them a hand. We accept the principle that there are similar issues for rural communities in the south as there are in the north.

"The next, more substantial, stage of this review must ensure that every tool at the disposal of government in Scotland is being used to help smaller firms succeed."