Scots fishermen have held talks with ministers in Edinburgh to thrash out a compensation deal following a 45 per cent reduction in cod quotas.

The industry is set to land up to £30 million in state aid in order to see it through the dramatic reduction in fishing time.

The prime minister will also meet with fisheries leaders early in the new year in order to discuss a "realistic" compensation package.

The government has let it be known that it is considering a UK-wide package of aid worth up to £50 million.

In the meantime fishermen are seeking a court order to block the introduction on the reduction in cod quotas.

The British fishing industry reacted with fury to the deal.

Following five days of negotiations, EU fisheries ministers agreed to the swingeing cuts in order to save dwindling fish stocks.

Despite intense criticism, the fisheries minister, Elliot Morley, insisted the step was necessary to preserve a viable fishing industry in the future.

"We could not put more fish in the sea, but what we have done is try to minimise the effect on our fishing industry as far as we can," he said.

The agreement means that cod fishermen will be allowed only 15 days a month at sea.

The final deal, which came after marathon negotiations, was better than some had feared.

Initial proposals drawn up by the European Commission would have seen a 90 per cent tie-up introduced.

But the government's political opponents have slammed the deal - warning it throws the future of the UK's fishing industry into doubt.

John Swinney, the SNP's leader, said that the agreement would decimate the North Sea fishing industry.

"This deal is a death sentence on our fishing industry. It will destroy an industry that is the economic engine of communities across Scotland and leave thousands of families facing ruin.

"As recently as Thursday, Jack McConnell promised the Scottish Parliament victory for our fisherman. Now we see that the reality behind his rhetoric.

"This deal delivers increased quotas to the Dutch, the Danes and the French fleets. Every independent nation managed to secure a good deal for its fisherman, yet Scottish fishermen, relying upon the UK, are facing disaster.

"Yet again, Jack McConnell has promised much and delivered next to nothing. He has failed to deliver and the price will be paid by the thousands of fishermen and their families now destined for the dole."

The president of the Scottish Fishermen's Federation, Alex Smith, said the proposals would have a "devastating" effect on the industry north of the border.

"It is immoral to treat people like this," he added.Some countries, however, say fishing quotas increased at the Brussels talks.

French fishermen will be allowed to land more saithe and the Dutch and the Danes were awarded increased herring quotas.