Henry McLeish made the announcement

"It is a huge educational boost and a huge boost for the economy.

"Obviously we have waited for two years for this, but we have the designation date today and that will allow Scotland's Higher Education Funding Council to invest in higher education."

Internal problems have plagued the project and notable critics have included one of the founders, Professor Graham Hills, former principal of Strathclyde University, and councillor David Alston.

Complaints of mismanagement and staff intimidation emerged in the summer which were refuted by the project leaders.

Councillor Alston, who sits on the university foundation, said he was now more optimistic.

"There has been a recovery of the vision, people are excited again about what this project will achieve, people are working together and if university designation is coming then that has to be a boost.

"I think this is all going in the right direction, there are still things to put right, it has always been an extremely challenging project.

"It would be fanciful to see things as perfect, but it is back on course," he added.