The contract for the main phase of works on Lews Castle - to convert the historic building into a multi purpose facility including a new Museum nan Eilean, archive centre and hotel - is expected to be officially awarded this week.
However it is believed it will not be awarded to a local firm.
Island firm Neil Mackay & Co were awarded the contract to complete the first stage of works earlier this year after the demise of Patton at the end of 2012.
They had hoped to secure the main contract in a joint bid with another company but it is thought the contract is due to be awarded to an off island firm.
Neil Mackay & Co workers had been employed by Patton as sub-contractors at the start of the first phase of works and incurred heavy losses as a result of the collapse of Irish firm Patton.