EDINBURGH’S historic Lothian Chambers building will become Scotland’s "House of France" in a move which will earn the city council millions and save £173,000 a year in running costs.

It is believed that the Church of Scientology had been looking to move into the building from their current premises on South Bridge but one source described this aim as a “non-starter,” while a major store chain and a casino operator have also been knocked back in favour of the French option.

Councillors are set to approve long-term lease arrangements which would see the French Consulate agree to move into the three-storey B-Listed building, which was constructed between 1900 and 1904 as Midlothian County Buildings and is situated in a prominent location on the Royal Mile, at the corner of George IV Bridge and Lawnmarket.

Following meetings with the Lord Provost, the Consulate, currently based in Randolph Crescent, has proposed relocating this year to tie in with the 70th anniversaries of both the Consulate in Edinburgh and the Edinburgh International Festival.

Proposals for the building include a 100-seat auditorium to host an extensive programme of theatre, music, dance and artist residencies that aim to support and showcase performances from Scottish, French and international artists.

There will also be a 20,000-book and multimedia library, offering a variety of lectures, reading groups and youth activities; an art gallery and a Scotland Centre for Photography; a French and European language school, and an information and support centre for French and European citizens.

An outsourced cafe offering refreshments and light catering will be provided, along with continued space rental for receptions, weddings and civic occasions – planned weddings until September will be honoured.

A further council office at 329 High Street will also be sold off, and together with Lothian Chambers, the council will earn in excess of £7 million this year, according to a report. Councillor Gavin Barrie, the city's economy convener, said: “The proposals would give the Lothian Chambers a new lease of life and provide residents and visitors with fantastic opportunities to enjoy public access to the property.”

French Consul General Emmanuel Cocher said: “True to the Auld Alliance as well as our European bonds, France wants to invest in Edinburgh and Scotland. The Lothian Chambers are set to house an enhanced programme of international and Scottish cultural activities, relevant to all audiences.”