Overseas postgraduate students are to be offered the chance to stay in Scotland for an additional two years after they finish their course.
The scheme encourages overseas students to work in Scotland
A Fresh Talent scheme has attracted about 4,300 undergraduate students from more than 150 countries since 2005.
The Home Office has now extended the scheme to include postgraduate diplomas and certificates.
The Scottish Executive welcomed the move and said it would help meet a "high level of demand".
Finance Minister Tom McCabe said: "The success of the Fresh Talent: Working in Scotland scheme has been outstanding.
"Our information from a sample of graduates currently on the scheme shows that more than 90% of respondents rate Scotland as a very or fairly attractive place to live or study.
"I am delighted the scheme has now been extended to include post-graduate diplomas and certificates to meet the high level of demand for our first-class education system and the excellent quality of life available in Scotland."
The Home Office also announced a new International Graduates Scheme (IGS), which will allow international graduates from a UK institution to remain in the country for an additional year.