Glasgow Caledonian University has ditched plans to relocate to the East End.

Staff were told by e-mail that a planned move from the city centre to Dalmarnock is now off.

The university unveiled ambitious plans to move its entire Cowcaddens Road campus to a site next to the 2014 Commonwealth Games athletes' village.

But principal Pamela Gillies said the economic downturn had made it difficult to guarantee funding to deliver the project.

The university is, instead, planning to set up a smaller outreach project in the East End, in partnership with Culture and Sport Glasgow.

The e-mail said: "It is clear significant public investment would be required to bridge the funding gap to deliver this initiative, and at this time, given the current external financial situation, it appears unlikely the scale of the university's ideas can be realised.

The relocation plans were described as "ambitious and innovative" by the principal when they were announced in July.

But many staff complained they hadn't been consulted and doubted the feasibility of the plan.

The university used to have three campuses but since 2002 has consolidated at the Cowcaddens Road campus. It has around 15,000 students and a staff of 1500.

Meanwhile, Glasgow University has announced the appointment of a leading political economist as its new principal.

Prof Anton Muscatelli, currently head of Heriot-Watt in Edinburgh, will take over from Sir Muir Russell next year.

University management praised Prof Muscatelli, a Glasgow alumnus, as one of the most respected academic leaders in Scotland.

At 46, he will become the youngest university principal in Scotland.

Joy Travers, of the selection committee, said: "Anton brings exceptional strategic leadership and understanding of the issues facing universities."