Tenants in Inverness and Highlands will be balloted on the transfer

It comes a day after the transfer of council homes in the Western Isles.

Mr Chisholm said if the transfer goes ahead Highland Council's housing debt of about �160m would be written off.

However, Donnie Kerr of Highland Against Stock Transfer said tenants have a special relationship with their council landlord.

Mr Chisholm said the transfer would mean more money could be invested in houses.

He said: "I have no doubt that the proposals I have approved in principle today offer significant benefits to tenants, their families and their communities in the Highlands."

'Next election'

Mr Kerr said tenants risk losing their influence on property management issues under a move from council control.

He said: "If we don't like the way they manage our homes we can vote them out at the next election.

"But the new housing association landlords will be run by a board of directors who will be accountable to the council and not to the tenants.

"So the ability of the tenants to influence how the council does their housing will be greatly reduced."

Council tenants will be sent details of the proposal to transfer stock to the Highland Housing Association shortly.