The Windsor Castle, the former Northern Lighthouse tender Fingal currently in dry dock at A&P Falmouth, is to become a bespoke floating hotel berthed next to the Royal Yacht Britannia.
The visitor attraction has purchased the Windsor Castle with plans to convert the ship into a 25 berth hotel and will spend £1m converting it into a 25-bedroom luxury flotel.
Due to open in spring 2016, the hotel will be permanently berthed next to the Royal Yacht Britannia at Leith.
Launched in August 1963 by the Blythswood Shipbuilding Company in Glasgow as the Fingal she operated out of her base in Oban.
In 2000, she was sold to Tamahine Shipping and has been laid up in the River Fal until July this year when she came down river to the docks.
The Windsor Castle will arrive in Leith at the end of the month and will undergo an 18-month conversion.
Britannia chief executive Bob Downie said: "After many years of searching for the right ship, we are delighted that we have been able to acquire this iconic vessel and look forward to opening Scotland’s first boatique hotel.
"As a youngster growing up in Oban I have very fond memories of seeing the Fingal and I am delighted that the long-term future of another much loved classic vessel has been secured."