In 2015, he was arrested and charged with taking over the Glasgow football club by fraud. However, he was acquitted two years later following a seven-week trial. Mr Whyte sought compensation after a number of people involved with Rangers were awarded payments for being wrongly prosecuted.

He sued Lord Advocate Dorothy Bain KC for £500,000, seeking reparation for “loss of earnings and damage to reputation” as a result of the prosecution, which he said was “malicious”.

The case has, however, now been dropped after another businessman involved with Rangers lost a similar compensation claim.

Solicitor General Ruth Charteris KC confirmed Mr Whyte’s lawyers had ceased the action and that the case had been disposed of by the Court of Session last week. Ms Charteris wrote: “On March 15, 2023 Mr Whyte’s agents contacted SGLD [Scottish Government Legal Directorate] proposing a disposal of his action.

“On May 2, 2023 the court issued the final interlocutor absolving the lord advocate from the conclusion of the summons and finding no expenses due to or by any party. The proceedings in this action are now formally at an end.

“Both the lord advocate and I are committed to further accountability and a process of inquiry once all legal proceedings have concluded.”

The move comes after David Grier lost his own claim against the lord advocate.