Campaigners have reacted furiously to the decision to give the go-ahead to a controversial new £100million prison on the outskirts of Glasgow.

Plans for the 700-cell jail at Low Moss, near Bishopbriggs, were previously rejected by East Dunbartonshire Council amid massive public opposition. But today they were given the go-ahead following a public inquiry last May.

Campaigners said the move was the "worst possible" decision for the local community and urged prison governors to hold talks with community leaders.

The new prison will replace a hutted complex, which is made up of former Second World War barracks and has been operating since 1969, on the same site.

Objectors fear the expanded prison, which is situated near homes and a playing field, will house more dangerous inmates and bring sex offenders into the area.

And today the private firm Serco, which runs Scotland's only private jail at Kilmarnock, said it may be interested in running the new facility. A spokesman said: "We have shown at Kilmarnock that we can deliver a high-quality service and value for money and we will watch developments at Low Moss with interest.

The prison serves low-risk offenders and operates below its 300 capacity. The council's planning committee rejected the plans in 2005 after councillors voted against a recommendation to pass the proposals.

Councillor Billy Hendry, who campaigned against the proposals, said: "This decision has sparked fury in Bishopbriggs. Nobody in the town wanted a larger prison for higher category prisoners.

"The site is completely unsuitable. The Executive has ignored the concerns of people living here. This is some New Year present."

Gordan Low, of Bishopbriggs Community Council, added: "The rejection of any cap on the occupancy level of the new prison, without funding for the necessary infrastructure, must be close to the worst possible outcome for the wider community.

"The governor of Low Moss has written offering to meet the community council to discuss concerns relating to operational issues at the prison. It is important that legitimate concerns are addressed."

Council chiefs had raised concerns the development would put pressure on nearby roads. But under the revised agreement, the Scottish Prison Service has to pay the council £335,000 towards a new Bishopbriggs relief road.

The new prison will either be built under the private finance initiative, or funded by the SPS in partnership with trade unions.

Kenny MacAskill, SNP justice spokesman, has called on the Executive to resist the PFI option.

He said: "Private prisons are not good value and public safety is too important to leave to facilities run for profit."

The proposals to redevelop Low Moss were lodged after the existing jail was condemned for its "chronic overcrowding" in an inspection report in 2001.

A Scottish Executive spokesman said: "Ministers have advised the SPS they are minded to grant outline planning permission, subject to conditions."