Every local council and health board partnership is to be offered £120,000 to spend in 2010-11, but each authority has to provide match funding.

A total of £16m has been invested in telecare technology since 2006, with 25,800 older people having benefited.

Ms Robison said: "Investing in telecare is vital if we are to remain ahead of the game in meeting the needs of our growing older population.

"Telecare can help older people remain independent in their own homes - something we must explore further if we are to rise to the challenges we face."

The public health minister recently warned Scotland's care bill could rise to £8bn in just over two decades unless changes are made to "shift in the balance of care from institutions to home".

She said: "We are firmly committed to free personal care but we need to change the ways we deliver care, and investing in new technology like this has enormous potential to help us."

By helping older people remain at home it would help avoid an estimated 21,000 hospital admission days and allow them to continue contributing to their community, she added.

The funding would also be used for fire, flood and intruder alarms linked to a staffed 24-hour response service, and emergency pendants to call help in a crisis.