The firework display above Edinburgh Castle

Plans to scale down the Hogmanay celebrations were mooted last year amid concerns over rising costs and safety for revellers.

Organisers were worried that future events would fail to attract the level of commercial sponsorship needed to pay for the five days of events.

Police were also worried that people with forged passes could pose a danger to the safety of revellers.

But last year's event passed without any major hitches and the five days of celebration reached a climax with 100,000 people taking part in the New Year's eve street party.

Huge crowds

Edinburgh City Council said that this year's revised four day event is likely to cost around �1.5m and that one third of the cash had already been secured.

It is hoping that a winter festival could grow in stature to rival the city's main arts festival, which already attracts huge crowds.

This would lessen the problem of 'seasonality' and give the capital a more even spread of tourism cash throughout the year.

It is also being viewed as a vehicle to kick-start the Scottish tourist industry which is still under performing amid the current foot-and-mouth crisis.

Details of the new winter festival will be announced later this year.