Start on capital's Calyx could be just three years away

Edinburgh Rugby and Heart of Midlothian are set to be offered use of the 25,000-capacity arena, which may also house a national curling academy, under plans by Rangers owner Sir David Murray's property empire.

Murray Estates, which owns 600 acres of land in the Hermiston Gait area, in west Edinburgh, has vowed it is "all systems go" for the 1 billion project, despite the economic downturn, ahead of a week-long 400,000 consultation at Murrayfield Stadium.

Both the Scottish Government and Edinburgh City Council will have to give the firm special permission to develop the land, close to the RBS headquarters at Gogarburn and the Gyle shopping centre.

It emerged in June that Sir David's company was working on a masterplan which would create 650 jobs for a site which was once touted as a potential home for a new ground for Hearts. The Tynecastle club has drawn up plans to redevelop its traditional home in Gorgie, which have stalled due to funding problems. Edinburgh Rugby is currently based at Murrayfield.

The proposed stadium may also become home to a major athletics stadium for the city, which had previously looked at creating one in nearby Sighthill, but shelved the idea in favour of trying to refurbish the ageing facility at Meadowbank.

The 60-acre garden complex, dubbed the Calyx, is billed as a world-class attraction which would boast themed gardens, water features and research facilities.

The 25 million concept is being pursued for the site after a previous attempt to create the complex in Perth failed to get off the ground.

Jestyn Davies, managing director of Murray Estates, said: "We firmly believe that this is the best bit of real estate in the whole country at the present time.

"The whole project would probably take between 15 and 20 years to deliver, but we would hope to be in a position to submit detailed plans within the next two to three years."We would hope to be in a position to start work pretty soon after we submit a final application."

Mr Davies said officials from Hearts and Edinburgh Rugby had been invited to visit Murrayfield to discuss the firm's plans with its architects and designers.

Sir David added: "Despite the difficult economic times that we have all been experiencing, we have as a group continued to invest in Edinburgh and Scotland."

Tom Buchanan, the city's economic development leader, said: "I cannot say too much about this development as it is likely to be the subject of a public inquiry at some point.

"No-one involved in economic development will want to turn away these numbers of jobs involved, but they are going to have to convince an awful lot of people if this project is to succeed."