Mr Thomson, 64, was found guilty in 2006 after an audit showed an apparent shortfall of nearly £6,000 at his Cambus Post Office near Alva, which he had taken over from his mother in the early 2000s.

The father-of-two suffered severe depression and has admitted to attempting suicide after falling victim to the faulty Fujitsu-developed Horizon IT system rolled out by the Post Office, hundreds of others also being accused of theft, false accounting or fraud in the nationwide scandal.

He received a sentence of 250 hours of community service after changing his not guilty plea in the hope of avoiding prison.

His miscarriage of justice claim was due to be held earlier this month at the Court of Appeal in London. However, before the case could be heard, prosecutors said they would not object to his name being cleared.

Mr Thomson has now engaged Watermans as he seeks compensation for the wrongful prosecution and the years of anguish and emotional suffering he and his family have endured.

“It has only just started to set in that my conviction has finally been over-turned. I never thought I would see this day,” said Mr Thomson. “I just wish my mum was here to see this, too, but sadly she passed away before my name had been cleared. The conviction felt like a noose around my neck for so many years but I never stopped fighting to clear my name.

“The support of people around me who did believe in me and supported me through this has been so valuable. That includes the support of the solicitors who have taken on my case and believed in me all the way. I will now be working with my legal team to ensure that justice is served for all wrongfully convicted postmasters and that we are compensated for everything we have been through.”

Scott Whyte, Watermans managing director, said: “For over 20 years, Rab has had the shadow and the shame of this conviction hanging over his and his family’s head. It has been a huge burden that he has had to shoulder for far too long.

“We will now be taking his case forward to seek the compensation that he is rightfully entitled to. Whilst no amount of money will make up for all that Rab and his family have been through, it is essential that the Post Office and all involved in these malicious prosecutions are held fully to account and made to pay for the destruction they have caused to Rab and his fellow-postmasters.”