Island servicemen were returning home at the end of WW1 when the Admiralty yacht sank on the Beasts of Holm in the early hours of New Year's Day 1919.
Only 79 people made it ashore alive in what is Britain's worst peacetime maritime disaster.
The vast majority of the dead came from Lewis. Seven belonged to Harris while 31 were crew members from different parts of the UK.
A proposed civic remembrance event would take place on 31 December 2018 into 1 January 2019.
Part of the preparations for the event will be the re-
There is also a plan to erect a sculpture at Holm including interpretation panels, reflecting the loss of the HMY Iolaire and the impact on the communities of Lewis and Harris.
Consideration is also being for a sculpture in Stornoway town centre which would serve as a marker to encourage visitors to visit the memorial site.
Communities have also expressed an interest in replicating a smaller version of the final sculpture in each island district which suffered losses.
An update on the plans will be given to a council meeting on Wednesday.
Preparations for the 100th anniversary of the loss of the Iolaire
20 June 2017
The steam yacht Iolaire prior to the First World War
Preparations are underway to mark the 100th anniversary of the loss of the HMY Iolaire.
The remembrance of the disaster when 205 naval men perished close to land at the mouth of Stornoway harbour will be Scotland’s last official commemorative events to mark WW1.