The venture, which will also feature a shop and licensed cafe-bar, will be the first retailer to open at the multi-million-pound Quartermile development in the city centre. Everything from breads, chocolates and open sandwiches to speciality ice cream, marmalade and teas will be on offer at Peter's Yard, which is due to open in time for Christmas.

Award-winning Swedish baker Jan Hedh will be overseeing the opening of the business, a joint venture with Swedish businessman Peter Ljungquift, and two Edinburgh-based partners.

They are bringing to Edinburgh a four-strong team of bakers for the venture, who will then train up staff expected to be hired locally.

Mr Hedh and Mr Ljungquift said they had been scouring Europe for a suitable site for a second venture following the success of the first bakery/cafe they set up in Ystad, in southern Sweden, six years ago.

However, Mr Ljungquift said: "We considered Budapest, Prague, Berlin, London and Paris, as well as closer to home in Stockholm and Copenhagen.

"But we had heard that Edinburgh was the most civilised city in northern Europe, particularly with its universities."

Sophie Dow, who is also a partner in the business with her husband Robin, said: "The bakery, the shop and the cafe will all be on the one site just off Middle Meadow Walk, and we'll also be running both a mail order service and a delivery service for breakfast and lunch.

"All kinds of breads will be available, but people will be able to come in and enjoy a tea and coffee, or even a Calvados or rum with their chocolates or cakes.

"As a Swede living in Scotland I've often found it difficult to find a good variety of quality bread."

News of the new venture has emerged just days after First Minister Alex Salmond hosted the official unveiling of the Quartermile development.

The first residents are expected to move in within the next few weeks, which will also see the unveiling of two major new roads through the site and the arrival of the first office workers.

The whole scheme – which is expected to take another five years to complete – will eventually boast more than 900 homes, 300,000sq ft of office space, cafes, bars and restaurants, a boutique hotel and a major public square.

Colin MacPherson, development director for Quartermile developers Gladedale Capital, said they expected to be able to announce more lettings soon.