The rescue of the crumbling Lews Castle in Stornoway faces a major cash crisis with the project suffering a £3.2 million shortfall.

Vital repairs to save the castle by converting it into a five star hotel will not proceed unless a massive cash injection is found soon.

Until very recently, the funding gap stood at nearly £4 million - the amount needed to build 26 rooms (52 beds) plush self-catering flats in the upper floors of the castle.

Angus Campbell, leader of Western Isles Council said: “We are still trying to finalise funding for the upstairs part of the castle. We have to find extra money.”

Mr Campbell said the funding gap had closed slightly and now stood around £3.2 million.

The council - which is expected to plough more of its own money into the rescue - is in talks with potential funders.

Mr Campbell said he is “extremely hopeful” all the cash will be found.

The Comhairle is leading ambitious plans to save the decaying Lews Castle.

The Comhairle has already succeeded in attracting substantial sums for the wider £18 million development - which includes a museum - and is negotiating hard to find what it hopes is the very last piece of the financial jigsaw.

Built by opium trader and Lewis landlord James Matheson in 1847, the deteriorating category A-listed Lewis Castle is on the Buildings At Risk Register.

Construction work on an interlinked museum and heritage centre on the castle site is already well underway.

The project has previously hit significant funding hurdles but the Comhairle went out on a limb to press ahead with saving the derelict castle.

The refusal of crucial European funding threatened to kill off the flagship project but “spare” finance became available after other competing bids fell, so the council was invited to try again.

The Scottish Government stepped in with a £1.6 million award to close an earlier funding gap which allowed building work to commence.

Lews Castle rescue threatened by £3 million shortfall 2/7/14