The Scotsman Steps, in the Old Town, have been virtually unused for years after being beset with problems.

But now the link between Market Street and North Bridge – built to serve The Scotsman's landmark offices when they opened in 1904 – is to get a long-awaited makeover.

The short-cut is notorious as a magnet for drug-dealing, begging and rough sleepers.

A series of managers of the Scotsman Hotel have campaigned for action to be taken to improve the stairs' condition and image.

But the opening of the hotel in 2001, after the closure of the newspaper offices in 1999, and the opening of a nightclub in 2003 have seen them slide into further decline.

A £150,000 restoration of the steps will be carried over the next 18 months and new gates will be fitted to close the passageway at night.

New lighting will be installed and an agreement between the city council and the hotel on cleaning and monitoring of antisocial behaviour established.

The steps were built as part of the newspaper's headquarters when it moved from nearby Cockburn Street. The English baroque-style building was then the largest erected by private enterprise in Scotland.

Robert Aldridge, the environment leader at City of Edinburgh Council, said an architect would be appointed to draw up plans for the revamped steps.

He said: "The steps are a key part of Edinburgh's rich architectural history. A successful solution is long overdue and we need to work closely with partners to achieve one."

David McDonald, a project manager with Edinburgh World Heritage, said: "I think it's fair to say that a lot of people avoid using the steps because of the perceived safety, lighting, and litter problems. Improvements will be just as much about finding solutions for the management of the space as the physical restoration. If they were in better condition, then more people would use them, which in turn would add a self-policing element to the space."

Moira Tasker, the director of the heritage watchdog the Cockburn Association, said: "We're delighted that plans are afoot to bring about much needed improvements to the steps.

"They are an important link between East Market Street and North Bridge but have suffered from benign neglect in recent years.

"By tackling these we look forward to seeing reinvigoration of this public space in the Old Town."

No-one was available for comment from the Scotsman Hotel.