Talks are under way in a bid to rescue Edinburgh’s Christmas festivities after the new organiser of the city’s popular market pulled out.

The festivities, scheduled to run from mid November to early January, are worth £158 million to the Edinburgh economy but are now at risk following German company Angels Event Experience deciding to withdraw.

The city council is now in talks with Unique Events and Assembly Festival on how the market can still go ahead.

Assembly won the contract for the capital’s Hogmanay celebrations and put in a bid for Edinburgh’s Christmas.

Unique and Assembly were expected to present a proposal to the council this week, but no decision is expected until Monday, at the earliest.

Cammy Day, the leader of Edinburgh council, said: “We’re hugely disappointed that Angels Event Experience have been unable to deliver on their contract to produce Edinburgh’s Christmas.

“We’re in positive ongoing discussions around ensuring that Christmas events can be successfully delivered for the city this year.”

A spokeswoman for Unique Events confirmed the company had been approached by the council about Edinburgh’s Christmas, but said it was not in a position to comment further.