A new location has been earmarked for the construction of a block of student halls for the Lews Castle College.
Negotiations are underway with Western Isles Council which owns the site on Sandwick Road in Stornoway.
The student flats could be used as extra tourism accommodation during the summer and are part of the university’s £44 million agreement with Cityheart to build and operate student residences across the Highlands and Islands.
The developer pointed out that the extra students from outside the region, who were attracted to study on Lewis, would boost the local economy with extra spending in shops and restaurants as well as their families coming to visit the area.
Last year, planning permission was turned down for an application to construct a four-storey block of 45 rooms on the site of the former bakery at Stag Road in Bayhead.
Accommodation was to be arranged in clusters of six bedroom flats plus four studios.
Concerns arose over its design, scale, form and large size within the neighbouring conservation area.
A total of 11 people lodged objections over inappropriate design, the scale and mass of the building, the lack of parking, effect on neighbouring amenity problems during the construction phase and the potential for nuisance from students.
Cityheart’s managing director, Mark McNamee, declined to confirm what location they were focusing on.
However, council sources said discussions were ongoing over Cityheart acquiring disused land at the rear of a car park opposite the local authority headquarters.
The plot is larger than the rejected Bayhead site.
Mr McNamee said: “We are actively looking at sites in Stornoway for the University of the Highlands and Islands (UHI) as part of our wider brief.”