Scotland's new social security agency is to be headquartered in Dundee, creating hundreds of new jobs in the city.
First Minister Nicola Sturgeon announced the agency would also have a site in Glasgow with at least 1,500 jobs split evenly between the two cities.
Ms Sturgeon said: "Having powers over newly devolved benefits presents an exciting opportunity to create a social security system for Scotland that is fairer and based on dignity and respect.
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"I'm delighted to confirm that Dundee and Glasgow will be the locations of the new social security agency.
"Establishing headquarters in Dundee demonstrates our support for the city's ongoing regeneration. Having two sites will ensure that economic benefit is spread between the east and west of Scotland and across the cities' neighbouring areas.
Photo credit: Andrew Milligan/PA Wire
"The agency will also have a local presence with additional staff working across the country that will ensure that economic benefit and jobs will also be spread across all parts of Scotland.
"Our new social security system is the largest, most complex programme of change in the history of devolution. We will continue to work hard to engage with local partners and our innovative social security experience panel as we develop the service."
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Dundee City Council leader Councillor John Alexander said the move would "provide a notable boost for the local economy".
Glasgow City Council leader Councillor Susan Aitken added: "The new social security agency will benefit the whole of Scotland, but it's great news it will have such a direct benefit to the people of Glasgow, and I want to congratulate Dundee on hosting the headquarters."
Labour MSP Jenny Marra, who had lobbied for Dundee to be chosen, said: "Our campaign to bring the new social security agency to Dundee has paid off today with 700 desperately needed jobs in Dundee.
"After 10 years in office the SNP has finally made good on Shona Robison's pledge to build on Labour's transfer of jobs to Dundee. This is great news for Dundee, our economy and our experienced civil servants."
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Alison Johnstone MSP, the Scottish Greens' social security spokeswoman, said: "The announcement is welcome because it marks a milestone in the Scottish Parliament taking control over significant new powers over social security that have the potential to make a positive impact on people's lives.
"While people in Dundee and Glasgow will no doubt be pleased that the cities have been chosen to host the agency's headquarters, what's more important than location is that the Scottish Government chooses to take a drastically different approach to social security than has been the case under Westminster's control."
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