Jack McConnell with Eileen Murray of Morgan Stanley in New York

Confirmation of the new posts follows the completion of its takeover of the Glasgow-based Goldfish credit card operation in February.

The Goldfish jobs will be retained and the new posts take Morgan Stanley's Scottish workforce to nearly 1,800.

The jobs were secured with the help of a �3.2m regional assistance grant from the Scottish Executive.

The announcement was made after a meeting at Morgan Stanley's headquarters in New York between the firm's head of global operations, Eileen Murray, and First Minister Jack McConnell.

'Dynamic population'

David Nicol, Morgan Stanley's chief administrative officer in Europe, said: "Glasgow is one of the great financial centres of the UK, with a vibrant, dynamic population and economy.

"We are every pleased to be expanding our established presence there, further underlining our strong commitment to Scotland."

Mr McConnell, who is in New York for Tartan Week, said the jobs were "clear evidence" that Scotland's financial services sector was "thriving".

"It is a further tribute to the strength, skills and depth of the fantastic workforce at the disposal of companies who choose to locate in Scotland."

The firm has invested in Scotland for seven years

Scotland is now Morgan Stanley's largest base in Europe outside London.

Martin Togneri, chief executive of Scottish Development International, which has worked closely with the firm, said the expansion would be a "tremendous boost" to Glasgow's growing financial services district.

Among the new positions on offer will be those for financial and operational managers and analysts for Morgan Stanley's institutional securities business.

Launched in 2003, the area was dubbed Glasgow's "square kilometre" - in reference to London's "square mile" - and aimed to attract 20,000 jobs during a 10-year period.

Steven Purcell, leader of Glasgow City Council, said: "This news proves that Glasgow's international financial services district is a world-class destination for world-class companies.

"We have worked with the private sector to create an environment fit for 21st Century commerce, which is in keeping with our ambition for a competitive and diverse city economy.

"This shows, once again, Glasgow's ability to attract and retain high value jobs for our citizens."

The financial services sector generates �5bn a year for Scotland, according to the executive.