A controversial funicular railway planned for one of Scotland's most famous mountains will be built next year after its developers won a key legal battle.

The Cairngorm Chairlift Company says the development will ensure sustainable tourism in the heart of one of Britain's most important wildernesses, the Cairngorm mountains, without damaging the environment.

The railway will copy recent modern designs

But environmentalists fiercely oppose the �15m scheme, saying it will damage the environment and pose a risk to the breeding grounds of rare birds protected by law like the snow bunting, dotterel and ptarmigan.

A petition by the World Wide Fund for Nature and Royal Society for the Protection of Birds that would have stopped the railway was submitted to Edinburgh's Court of Session.

But Lord Nimmo Smith dismissed the appeal, paving the way for the railway to take 200,000 people annually up the 1,245m Cairn Gorm mountain from 2001.

The WWF and the RSPB voiced "great disappointment" at the ruling.

"The petition sought to ensure that the boundaries of conservation sites and the decisions regarding the building of a funicular railway on Cairn Gorm were fully consistent with the requirements of European and UK law", said the two groups.

They said they would "seriously consider" whether to appeal.

Ends 10-year battle

Cairngorm Chairlift Company has been trying to win approval to build a funicular, as a replacement for the ageing chairlift currently in place, for 10 years.

Its chairman, Hamish Swan, said: "We are now looking forward to getting started on construction next year and creating a sustainable tourist attraction.

"The scheme will offer an opportunity to heighten environmental awareness by bringing thousands of people into the Cairngorms. I hope the RSPB will work with us to get sustainable tourism.

"This means more jobs, more people coming to Scotland and it will be good for Scottish tourism."

Peter Peacock, convenor of Highland Council, said: "The plan has the support of the planning authority, all the major political parties, Scottish Natural Heritage, and the local community. All the procedures have been vindicated.

"I hope WWF and the RSPB can move on with the rest of us. If they do appeal we will have to go through the process again.

"It has been claimed that this project would damage the environment but it is our firm belief that it will improve the environment of the Cairngorms by managing sustainable tourism."

Bob Kass, from Highlands and Islands Enterprise, said fighting the petition had cost the public purse more than �250,000.

He said no decision had been taken yet on whether costs would be sought, but added: "It is normal practice to seek legal costs."