Developed by the Scottish Futures Trust, the GA model is designed to stimulate growth, create jobs and support businesses through a combination of public and private sector investment in local infrastructure and public spaces.

Funding is linked to the delivery of agreed outcomes and will be targeted towards improvements to Dundee railway station concourse, development of the V&A and ensuring the Waterfront boasts world class digital infrastructure. 4,500 square metres of Grade A office space will also be developed alongside improvements to civic spaces.

Welcoming the agreement, Mr Swinney said: “The £63.8m funding available through this Growth Accelerator agreement underlines the strength of the government’s commitment to Dundee and our desire to help create jobs and grow the economy.

“The nature of this funding model enables investment to be unlocked now that will support development in the area and longer term economic growth.

“This package includes £13m for the Dundee Railway Stations concourse in addition to the £4.3m wider station development and £3m to establish a future-proofed digital corridor to assist the city’s world renowned games industry and provide a competitive digital solution to support economic development.

“We are also providing up to £20m to further support the development of the V&A and over £25m to redevelop the two civic spaces at Discovery Plaza and Waterfront Place.

“Our existing infrastructure investment programme is already working to improve connectivity and stimulate economic growth. Through projects like the V&A we are also enhancing the cultural offerings, which are key to creating the right environment for attracting investment.

“The GA model continues to be explored in other cities and regions to unlock further investment across Scotland, and I look forward to receiving any proposals in due course.”

Cllr Ken Guild, leader of Dundee City Council, said the announcement is the key to unlocking increased funding for “one of the most exciting and innovative projects currently going on in Scotland”.

He said: “The V&A is already creating jobs and injecting money into Dundee’s economy during the construction phase and generating a halo effect by attracting significant private investment.

“In the past two weeks alone we have had more than £70m of such investment announced in the wider Waterfront regeneration project and Dundee Port.

“Right now there is an unprecedented level of investor interest in Dundee and this announcement will help to reinforce that.”

Tony Rose, infrastructure director at the Scottish Futures Trust, added: “Building on our pathfinding work with The City of Edinburgh Council, I’m delighted that Dundee City Council is using our innovative Growth Accelerator which will unlock and deliver substantial economic growth across the City, both during and after construction.”