Discovered near Wigtownshire in the south-west of the country, the wreck of the German WWI submarine was identified by workers who were laying a new power cable under the North Sea.
The vessel is thought to be SM UB-85 - a U-boat which, under the command of Captain Gunther Krech, was famously caught on the surface by a British patrol boat back in 1918.
To the surprise of the British forces the Germans surrendered almost immediately. When later questioned about this, Krech explained that his submarine had been on the surface of the water recharging its batteries when it was suddenly attacked by a "strange beast."
According to Krech, the crew had managed to drive the creature away with small arms fire. The vessel itself however had sustained so much damage that it was no longer capable of submerging.
"That is why you were able to catch us on the surface," he told the British.
Exactly what happened afterwards has long remained something of a mystery, but if UB-85's wreckage really has been found then it may finally be possible to get some answers.
"It is entirely feasible that some large sea creature disabled the submarine," said Gary Campbell, keeper of the Official Sightings Register of the Loch Ness Monster.
"History has shown that there have been consistent reports of large 'monsters' not just in lakes and lochs like Loch Ness but out in open waters as well."