A NEW row over historic premises has erupted after a £1.5 million bid to buy the derelict landmark was rejected outright.

A rival developer, the Royal High School Preservation Trust, declared its intent to pursue plans to move St Mary’s Music School into the old Royal High School in Edinburgh with the cash offer.

However, owner Edinburgh City Council has said the famous neoclassical Thomas Hamilton buildings on Calton Hill are already under lease in a £75m plan to convert the A-listed architectural masterpiece into a hotel led by Duddingston House Properties and Urbanist Hotels.

Backed by the philanthropic Dunard Fund, the trust that is challenging the plan announced a formal legal offer to buy the buildings and appointed architect Richard Murphy to develop designs to restore the site as a school, alongside conservation architects Simpson and Brown.

The council has granted DHP a 125-year lease after the company won an open competition and said this plan is now in the planning process.

Heritage groups have called a meeting for tonight following the move.

The Architectural Heritage Society Scotland and Edinburgh heritage watchdog the Cockburn Society are holding the meeting at St Andrew's and St George's West Church, George Street.

Dr Kenneth Taylor, headteacher of St Mary’s Music School, joined William Gray Muir, the chairman of the trust, as he made the announcement of the bid to purchase the Old Royal High School for £1.5m, which they said is exceeding the value currently put on the buildings by the council.

Mr Gray Muir said: “The Old Royal High School buildings are crucial to the character of Edinburgh and part of the architectural heritage that attracts people to this wonderful city.

"The trust was set up specifically to conserve and protect this masterpiece for the long-term and what better way than to restore it to its original purpose as a school?"

Architect Professor Gordon Murray has supported the first stage of the hotel plan which David Orr of the Urbanist Group said would create "a world-class new accessible destination for Edinburgh locals and visitors alike".

Mr Murray said: "Part of this revitalisation and regeneration is to recognise both the historic and the contemporary and avoid conflating them.

"In embracing Thomas Hamilton’s original Royal High School the contemporary architecture proposed here has a hard task remaining low key and a lot to live up to in quality but the ingredients are right and a fitting start has been made."

A spokeswoman for Edinburgh City Council said: “Old Royal High School is not on the market as the council has a legal agreement with Duddingston House Properties to lease it. The site is now subject to a planning application for a hotel, which has been submitted to the council and will be considered in due course.”