Efforts to secure the future of two of Scotland's steelworks are at a critical phase as the two parties close in on a deal, the First Minister has said.

Tata Steel's mothballed plants at Clydebridge and Dalzell require new operators and the Scottish Government is confident that an agreement can be reached that would see Liberty House take over operations.

Nicola Sturgeon told MSPs: "Negotiations with Liberty House and Tata Steel and the Scottish Government are continuing as we speak to secure the basis for an agreement which would see Liberty House buy and operate the Dalzell and Clydebridge steel plants.

"The final due diligence on that agreement is taking place at present. The agreement would be facilitated by the Scottish Government and involve us buying the plants and then immediately selling them on to Liberty for the same consideration.

"Fergus Ewing is attending the Scottish steel task force this afternoon and will provide further details at that point."

The Scottish Government recently made the promise of reduced business rates from April for any new operator, so long as they continue to use the sites for steel production.

A task force was established to secure jobs and the future of steel manufacturing in Scotland after Tata announced 1,200 UK job losses in October.

"I want to thank the workforce, the unions and the companies for their patience and perseverance," Ms Sturgeon said.

"We promised we would leave no stone unturned in our efforts to secure the future of our steel industry and that is what we continue to do."

Clare Adamson, SNP MSP for Motherwell and Wishaw, said: "That we have reached this stage is in no small part down to the strong action taken by the SNP government to maximise the potential for investment, including committing to cutting business rates at the plants.

"Lanarkshire's steel industry is iconic, not just locally but right across Scotland - I sincerely hope that this news will mean Lanarkshire's furnaces will continue to burn for some time to come."

Responding to the latest developments, Roy Rickhuss, general secretary of the steelworkers’ union community, said: "This is extremely welcome news and what everyone involved in the task force have been working towards. In particular, I want to pay tribute to Community's local reps and all they have done to get us to this point.

"The signing of this agreement is the first step towards restoring jobs and resuming production but there are still many steps to be taken.

"Community will continue to work tirelessly to see that happen. We made it clear that the skilled workforce at Dalzell and Clydebridge deserved a future in steel and from my discussions with Liberty I know they have the ambition to make that happen.

"The work of the Scottish Government's task force should not end here if the new business and other steel businesses in Scotland are to be part of a brighter future.

"There is further action and support needed to create an industrial and procurement strategy that enables Scottish steel to recover and then grow as part of a steel supply chain across the UK."

Commenting on the news that a deal is close for the Clydebridge and Dalzell plants, Scottish Labour’s James Kelly, a member of the steel task force said :

“Hopefully this deal can be concluded as soon as possible so these two plants can be put back into production and skilled workers can be re-employed. There are still some details to be finalised but these can hopefully be overcome shortly. “