Lawyers for 20 former players have been told that the club intends to negotiate a settlement.

It had previously said it was not responsible for any abuse as the boys club was an “entirely separate” entity.

It has, however, not admitted liability.

A judge had given the go-ahead for group proceedings earlier this year against Celtic for alleged abuses at Celtic Boys Club.

The boys club was set up as a feeder team to Celtic in 1966 – with the two clubs having close ties, sharing players, officials as well as premises.

Lawyers say the two were “intimately connected” and that the senior club was vicariously liable for assaults on boys.

The litigation, run by Thompsons Solicitors, relates to historical claims of sexual assault by convicted paedophiles Jim Torbett - the founder of the Boys Club - and Frank Cairney, a former coach.

A hearing for the group litigation was scheduled for October at the Court of Session before Lord Arthurson.