It is thought as many as 500 residents of Auchterarder, Perthshire, will be asked to carry a special form of photographic identification to get past checkpoints and roadblocks.

But the officer in charge of the police operation said such measures were simply “standard procedure” for a gathering of leaders from the world’s most powerful nations.

There are fears that the summit, which will be held from July 6 to 8, will be targeted by protesters and that some demonstrations could turn violent.

Chief Superintendent Brian Powrie said: “Tayside Police is making preparations for a major security operation at Gleneagles Hotel and the surrounding area.

“It is standard procedure for such events and requires those who live close to the venue to carry identification so they can get through any police checks with the minimum of inconvenience.

“This involves a relatively small number of people being photographed and issued with a pass by the police.”

On the restrictions that will be in place, Mr Powrie said: “Children under the age of eight will not require to be photographed but will be included on their parents’ or guardians’ identification.

“There is no upper age limit.”

The population of Auchterarder is around 4,000 but Tayside Police said the number of passes issued would be in the “mid to low hundreds”.

But the force declined to say how far the security cordon would extend around Gleneagles.

Peter Everett, chairman of Auchterarder and District Community Council, said opinion was divided about the potential impact of playing host to Prime Minister Tony Blair and the leaders of the USA, Canada, Japan, Russia, France, Germany and Italy.

Mr Everett said: “A lot of businesses think it will be an opportunity for more business.

“A lot of residents wonder why they did not move it on to an aircraft carrier.

“There is a bit of concern, not about the G8 itself, but about the potential for violent demonstrations.”

Mr Everett also said some locals have been worried about insurance.

“There have been one or two concerns about people’s insurance and the fact that some insurance companies exclude acts of terrorism,” he said.

In June, Mr Blair confirmed that, under the presidency of the UK, Gleneagles will host the 2005 summit.

The announcement followed the conclusion of the 2004 summit on Sea Island, Savannah, USA.

Police have warned “the full force of the law” will be used against any demonstrators seeking to wreck the event.

But senior officers also held out an olive branch to mainstream protest groups who may be planning to demonstrate peacefully at the Gleneagles event, urging them to make advance arrangements with police.