A deal to bring a billion-dollar telly project to Scotland is close to completion, industry sources have claimed.

Talks between Amazon Studios and Creative Scotland over the new Lord of the Rings are now at an extremely advanced stage, according to insiders.

The planned blockbuster series, based on the stories of JRR Tolkien, will be produced with help from the Tolkien Estate and Trust, book publishers Harper Collins and New Line Cinema.

It will be worth millions of pounds to the Scottish economy.

The plot has been kept secret but Amazon confirmed in March that the TV series will be set in the Second Age of Middle-earth.

The deal would see the five-year project based at Creative Scotland’s planned new Leith Studio with scenes also filmed on location across the country.

An artist's impression of Creative Scotland’s planned new Leith Studio in Edinburgh

In February, the Sunday Mail revealed Amazon scouts posed as tourists while visiting potential sites.

Studio head Jennifer Salke has visited locations across the country including Portree on the Isle of Skye.

An industry source said: “A deal is as good as done to confirm five years of filming in the new Leith studio.

“As soon as the venue is ready for purpose, filming will start. It’s a big boost for Scotland because the filming was originally supposed to take place in New Zealand, but it’s good to see Scotland winning the contract. Some filming will still likely be done in New Zealand and other places but I’d say 85 to 90 per cent of filming will be in the Leith studios and surrounding areas.”

Amazon Studios will be the first major client of the huge facility in Leith if the deal goes ahead.

Last year, the building was temporarily turned into a film studio as part of the production for Disney/Marvel’s blockbuster Avengers: Infinity War.

And once works are completed, the studio is expected to have up to five sound stages, workshops and production areas. The series is set to have the biggest budget in television history.

The Sunday Mail's coverage of a deal to bring a new Lord of the Rings series to Scotland

Glasgow Film Office said movie productions in the city brought in £15.1million in 2017. Edinburgh’s economy was boosted by £16.1million over the same period.

Creative Scotland was unable to comment on the filming of Lord of the Rings due to confidentiality, but said: “Scotland continues to be a popular destination for film and TV productions and we continue to welcome international productions choosing to base themselves here.”