Imran Ahmad was prosecuted in 2015 over the takeover of the club in 2012. All charges, however, were dropped two years ago.

Mr Ahmad is suing the Lord Advocate as well as Police Scotland.

He initially sought £2 million in damages but it is now understood he is seeking tens of millions of pounds, BBC Scotland reports.

A letter from the lawyers for the Lord Advocate, James Wolffe QC, states: “The Lord Advocate intends to issue a public apology that Mr Ahmad should never have been prosecuted.

“In addition, damages will be paid.”

Damages are also sought by former Rangers chief executive Charles Green, who is suing Police Scotland for wrongful arrest after charges against him were dropped.

Furthermore, former club administrators, David Whitehouse and Paul Clark seek damages of about £9 million.

Eric Baijal, solicitor for Mr Ahmad, told BBC Scotland: “He should never have been prosecuted and it appears that is finally going to be publicly acknowledged.

“There may be more to say in due course but in light of the ongoing civil proceedings our client has no further comment meantime.”

A spokesman for the Crown Office said: “The current discussions are confidential. The cases remain before the court and it would not be appropriate to comment further at this time.”