Secretary of State for Scotland Jim Murphy has held discussions with Rangers' bankers Lloyds, following reports the banking group, 43 per cent of which is owned by the taxpayer, had threatened the club with administration over its debts.

Boss Walter Smith had hinted on Saturday that the bank was now effectively overseeing the club's spending, with Rangers unlikely to be able to use much money on new players in the January transfer window.

A Scotland Office spokesman has now confirmed that Murphy and Lloyds held talks on Monday.

"The Secretary of State for Scotland spoke to Lloyds Bank today about the importance of the bank's support for Rangers Football Club," said the spokesman.

"There are clearly financial difficulties facing Scottish football clubs - both large and small. Our national game is important to Scotland and will come through this recession and the wider pressures in football."

The bank, meanwhile, clarified its position by insisting the club's management would remain in charge.

A statement read: "We do not run or manage the companies that we bank - that is, quite properly, the responsibility of the management.

"Given the recent press coverage, we would therefore like to be clear that Rangers FC is neither operated or run by Lloyds Banking Group.

"We would also like to be clear that Sir David Murray's decision to step down as chairman was a personal decision and not at the behest of Lloyds Banking Group."

It is understood the bank has not raised the prospect of Rangers being placed in administration if club bosses failed to introduce a series of cost-cutting measures at Ibrox.

The statement added: "The board of Rangers FC is developing and implementing a sustainable business plan and we have agreed to support this plan.

"The group is aware of the unique position that football occupies across many Scottish communities and has been working with Scottish football clubs, including Rangers."