Scotland's national sports agency, Sportscotland, has been saved, in what opposition parties have described as an embarrassing U-turn for the Scottish government.

A year ago, the SNP said the quango, whose duties include dishing out lottery money and safeguarding playing fields, would be scrapped and its business brought in house to be dealt by Scottish ministers.

Yesterday, sports minister, Stewart Maxwell, outlined what he described as a "radical overhaul" for Scottish sport, with sportscotland merging with the Scottish Institute of Sport (SIS), the headquarters moving from Edinburgh to the national indoor arena in Glasgow and the creation of four regional hubs.

Sportscotland chair, Julia Bracewell, is accepting of the changes: "We are delighted the minister has listened to the arguments and recognised the importance of our role moving forwards and we believe this is a good result for Scottish sport.

“We will now work closely with the government to refocus the merged organisation and ensure that collectively Scottish sport is ready to maximise the exciting opportunities that lie ahead."