The minister said he wants to see NCR continue in the city

He warned there was hard work ahead and added there would be no guarantees of a positive outcome.

A rapid reaction team looking into the situation is expected to bring forward an action plan at a later date.

Mr Stephen said the Scottish Executive would pledge "substantial" funding to help the team achieve its goals.

Meanwhile, Dundee University lecturer Carlo Morelli urged workers to occupy the plant in a bid to make NCR bosses change their minds.

Last week, the US firm announced that production of ATM cash dispensers would continue at its plant in Budapest, opened just over a year ago and at factories in Beijing and India.

'Glimmer of hope'

The firm blamed the "changing market environment" and competitive pressures for the job losses in Dundee.

The reaction team has brought together local and national government, Scottish Enterprise Tayside and other agencies.

Speaking from Dundee, Mr Stephen, who is also enterprise minister, said the unemployed workforce had to be given the opportunity to re-train, with help to find new jobs or support to set up their own businesses.

"We've got to make sure that advice is available easily on site, supported by the company," the minister told BBC Scotland.

"These things do not always happen. Some companies are, in these situations, difficult to work with. I believe that we've got to work very hard with NCR."

Dundee staff received the news of cuts last week

Mr Stephen added that the Scottish Executive was willing to provide funding running into millions of pounds to take forward the action plan.

He added that he also wanted to protect the future of NCR's research and development operation in Dundee.

The city council has raised concern that a knock-on effect among suppliers and other businesses could result in the total loss of as many as 1,000 jobs.

Local Labour MSP Kate Maclean, who represents Dundee West, said she was hopeful that Mr Stephen could offer the workers "a glimmer of hope".

"In the longer term, we do have to address the issue of the amount of job losses that there have been," she added.