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A controversial £50m plan to build a hotel, student flats and homes in Edinburgh has been thrown into doubt after its major supporter pulled out.

Edinburgh University is no longer part of the Stead's Place project on Leith Walk.

Earlier this year, councillors unanimously refused planning permission to demolish red sandstone buildings to make way for the development.

Drum Property Group has an appeal lodged with Scottish ministers.

The plans include 471 student flats for postgraduates, a 56-bedroom hotel and 53 affordable homes.

A university spokesperson said: "The university has kept a close interest in the proposed plan for Stead's Place and, after giving it careful consideration, has decided not to pursue that interest any further."

Community campaigners, who oppose the development, said the university's decision had come too late for a host of Leith Walk businesses who have been forced to shut.

The remaining four businesses, Leith Depot, Cassia, the Punjabi Junction and Leith Walk Cafe are all expected to close their doors by the end of the year.

A Save Leith Walk spokesman said: "We are surprised that the University of Edinburgh has terminated its partnership arrangement with Drum Property Group to build student accommodation in Stead's Place, Leith Walk.

"We appreciate that the University of Edinburgh has finally acknowledged the concerns of our community.

"Unfortunately, this has come too late for many of the local businesses in Stead's Place that have been forced to close."

Graeme Bone, group managing director of Drum Property Group, said: "Since purchasing the Stead's Place site in 2017, we have been delighted with the high levels of interest in the innovative student and hotel elements of our proposals from a range of potential operators, including the University of Edinburgh.

"We are close to selecting our preferred operating partner for what will be a game-changing and vibrant mixed-use development and will make a further announcement when those discussions have concluded."