The island has 3,000 acres

He informed islanders by letter that he his giving up his rights to ownership because of ill health.

Mr Holt, a previous owner of the Skibo estate, bought the historical island, which comes with its own baronial title, about 10 years ago.

FPD Savills, which is selling the unusual property, has already received three unsolicited approaches - one from a UK resident and two from Americans.

Guy Galbraith, head of Savills' sales in Scotland described the island, once owned by Colonel Sir James Horlick, as "unique".

'Romantic purchase'

And he said a purchase price of 25% above the figure being asked for, was "not impossible".

"I think it will go for substantially more that �3.85m. We are dealing with a romantic purchase here.

"There aren't five islands of Gigha lying in a row, like 25 Acacia Avenues - this is a one-off, it's a rare opportunity and it's a question of finding the right person to buy this property and I'm confident that if we do find the right person, that we will sell it for a substantially greater sum that �3.85m."

Mr Galbraith said the owner was quite clear that potential buyers must have a "genuine interest" in the community, and insisted that people were protected by the individual leases on their properties.