Apple plans to open first ever shop in the Capital

The company, famous for products like the iPod and iPhone, is said to be in "advanced discussions" about opening on Princes Street.

It also emerged today that fashion chain Cult is to open a new flagship store within Princes Mall, while Vodafone is to double the size of its Princes Street store.

News of the deals has been hailed as a major boost for Edinburgh's city centre.

Tom Johnston, director of retail at property firm Colliers International, said: "Apple have been looking at Edinburgh for some time and there is no doubt that having a company like them in a street like Princes Street would be a real flagship.

"The major retailers like the Apples and the Cults are still acquisitive. There always has been a shortage of (retail] accommodation in the centre of Edinburgh and because of the style and quality of Princes Street, you will always get retailers looking."

Apple opened its first Scottish store on Glasgow's Buchanan Street in 2007.

It is said to have been looking at a move to Edinburgh for some time and has discussed a potential move into the Burger King unit at the East End.

It has also held discussions about combining two stores in the west end of Princes Street.

Councillor Tom Buchanan, the city's economic development leader, believes that the arrival of Apple would be as big a coup for the city as the new Primark store, which is due to open by the 2011 festive season.

He said: "Apple is a fantastic brand that is recognised worldwide. That is the type of operator we want to attract.

"Operators like Apple, or Primark, tend to pull in customers from areas far and wide and that helps other retailers."

Cult already has a small store on North Bridge but the Princes Mall store will be larger, at 11,500sq ft feet.

Niall Macdonald, director of retail at property firm Jones Lang LaSalle, said: "Having a retailer the stature of Apple coming into the city is monumental news. Cult is a great letting for Princes Mall and it will be a big flagship store for them that will give the centre the direction it has been looking for."

Nobody at Apple was willing to comment.