The Highland and Islands has been allocated a share of EU funding

The region is among the three poorest areas in the UK, which are to benefit from the biggest share of funding.

Industry Minister Margaret Hodge said the allocation formula aimed to tackle disparities in economic performance.

The UK's overall allocation has been cut from �10.6bn over seven years to �6.7bn, as funding is directed towards the poorer new member states.

Cornwall and West Wales and the Valleys were also targeted in the funding round.

Ms Hodge said: "We are confident the rules we have drawn up will mean the money is used in the fairest way for every region. No one is excluded.

"Whilst we are proud of our economic record, we know we have more to do to tackle regional disparities in economic performance.