A Welsh-language magazine has been handed a £600,000 grant by Wales' government.

Weekly title Golwg, based in Lampeter, will use the cash boost to establish a Welsh-language website with daily news and sports updates.

The company beat competition for the grant from several other media groups including Media Wales, publishers of the South Wales Echo and Western Mail.

Wales has several Welsh weekly newspapers and the grant was originally earmarked for the launch of a daily title.

However, the main contender for the cash – Y Byd – failed to come to fruition after owners Dyddiol Cyf decided the funding was insufficient.

Managing editor Dylan Iorwerth told holdthefrontpage: "We have a website with a version of our magazine on it.

"The idea is to start a daily news and current affairs service.

"We intend to build a website that can also be used by other people within the Welsh-language community.

"There will be the opportunity for people to place stories that might not get through elsewhere."

Golwg, priced £1.50, employs 15 staff and covers news and features both in Wales and Welsh people making the news abroad.

The new online arm would mean up to 14 new editorial, business and technical roles being created as the project takes off.

The grant is worth £200,000 a year for the next three years.

It is believed the BBC is the only online service currently offering daily news updates in Welsh.

Welsh Assembly's Heritage Minister Rhodri Glyn Thomas said: "This is good news for Welsh language journalism and an investment in the future.

"I understand that each one of the bids were of a high standard and I would like to thank everyone who gave of their time and energy.

"This will see the development of a sustainable news company in west Wales and stabilise Welsh language journalism.

"This development strengthens the industry as well as taking Welsh to multiple platforms and creating pluralism in the Welsh language news sector.

"Golwg Ltd and the Welsh Books Council will work together to ensure that this new development attracts new readers in the medium of Welsh."