Craft beer maker BrewDog has threatened to abandon plans to build a £5m hotel complex in a row over a cemetery.

BrewDog wants to buy up almost 12 acres of council-owned land next door to its Ellon brewery for the development.

It claims the plot, which is scheduled to be turned into a cemetery, is worth £58,500.

Aberdeenshire Council reportedly wants £3.5m for the land, however, and has accused BrewDog of valuing it "vastly below market value".

A BrewDog spokesman said: "We want to build a world class hotel, outstanding restaurant, conference centre and bespoke distillery just behind our brewery in Ellon.

"This project would see us invest £5m into the local area and create over 80 new local jobs.

"However, the project cannot go ahead because the council are refusing to sell us the land at fair market value, indeed, they are insisting on charging over 60 times fair market value for the land we need to make this exciting local project happen."

He added: "We cannot afford to build the distillery and hotel in Ellon and will look to do this elsewhere."

BrewDog accused Aberdeenshire Council of putting its own interests "over those of the people they supposedly serve".

Founder James Watt has offered to pay a up to £10,000 an acre for the land and to buy new land for a cemetery.

Council chief executive Jim Savege said: "We are a proactive council with a commitment to working with local businesses. We also have a responsibility to ensure best value for public money.

"There are ongoing protracted negotiations with BrewDog and this announcement appears to be intended to weaken the council's position."

He continued: "We're disappointed that the company has sought to break confidentiality during what we regarded as live and ongoing discussions to achieve an agreement which is fair to both parties and which protects the interests of the local taxpayer, as well as creating opportunities for residents.

"At the heart of this issue is that the land BrewDog wants has been already earmarked for the expansion of the local cemetery.

"We cannot sell land vastly below market value - the figure BrewDog has been asked to meet is what the land is worth right now."

Mr Savege added: "Their suggested land value is more representative of agricultural value than a site which has permission for an alternative use.

"Assisting local businesses to expand is a key objective of Aberdeenshire CounciI.

"If Brewdog remains committed to taking forward this development, then we remain committed to do everything that reasonably can be done to help the company achieve its ambition."