A UK departure from the European Union could be good news for the Republic, according to a leading Irish economist.

David McWilliams has suggested the Republic "could win big" if the UK votes to leave the EU as it could benefit from United States investment.

The economist said he believed the US could divert investment away from the UK if it decided to leave the EU and push it in the direction of the Republic

The UK will hold a referendum on June 23 to decide if it will stay in or leave the EU.

Mr McWilliams said the Republic has benefited from a good relationship with the US in recent years with the number of American visitors to Ireland increasing by almost 15 per cent in 2015.

"The special relationship between Ireland and the US is becoming more and more significant and this will not change if Trump wins the election, which looks less remote by the day," he wrote in the Irish Independent.

"As the US economy has recovered in recent years, we've seen a big rise in the number of American visitors coming here."

Mr McWilliams said with US direct investment stock in Ireland totalled a record $310 billion in 2014, the Republic could benefit even more if the UK leave the EU.

"If the Brits decide to leave the EU and this undermines the UK as a location for investment (as the official view suggests), then some of the US investment in the UK will be diverted," said Mr McWilliams.

"If this is the case, where will this investment be diverted to? Ireland is an obvious answer.

"When we stand back, it is clear that our strongest strategic economic relationship is the one with the US. This will not change whoever is in the White House."

The economist added: "As for Brexit, we could win big if it's a vote to leave. But you wouldn't think that from listening to agitate for a 'remain' vote.

"Not for the first time, Official Ireland has misread the situation."