A new £66m Highlands and Islands prison is to be built next to a major retail park in Inverness.

The Scottish Prison Service confirmed a 7.2 hectare site at Stratton, to the rear of Inverness Retail Park, has been earmarked for HMP Highland, which will hold around 130 inmates.

The site is just off the A96, close to two business parks and the University of the Highlands and Islands in the West Seafield area of the city.

Highland will replace the ageing HMP Inverness, also known as Porterfield Prison, which is situated close to the city centre.

The prison service had originally planned to build the new jail at Milton of Leys, next to a residential area to the south of Inverness.

But residents opposed the move and campaigned against it.

Conservative MSP Edward Mountain described Thursday's announcement as a "huge victory" for the local community.

He said: "I'm delighted the Scottish Prison Service has finally, under the pressure of the local community, chosen to go with the original site which was the only one recommended under the original consultation ."

He added: "I'm delighted to have played a small part in the helping the community."

Prison service chief executive Colin McConnell said a deal had been agreed with the land owners and a planning application would now be lodged for the Stratton site.

He said: "An agreement has now been concluded with the site owners and SPS intend to pursue a planning application for the site in due course.

"The application for the site will of course include the normal community consultation processes.

"SPS do not intend to pursue any further interest in the site at Milton of Leys."

Justice minister Michael Matheson said: "I'm pleased that SPS have now reached this stage and look forward to the development of a new fit-for-purpose prison which can provide suitable accommodation for people in custody from the Highlands and Islands - keeping them closer to their families and their communities.

"Alongside our investment, through the Scottish Courts & Tribunal Service, in a new Justice Centre for the city, this latest milestone underlines the Scottish Government's commitment to improving the effectiveness and experience of the justice system for the people of the Highlands".