Bain is seeking £1.3million compensation after his association with the club ended following Craig Whyte's takeover in May.

Rangers, who are contesting a tribunal with Her Majesty's Revenue & Customs that could cost them an estimated £49million, responded tonight following a hearing at the Court of Session in Edinburgh.

A statement read: "In a week where the focus should be on football, the conduct of Martin Bain, who always claimed to have the best interests of Rangers Football Club at heart, is truly astonishing and I am sure our supporters would agree.

"The club is disputing any money is due to Mr Bain and we will be vigorously appealing the decision. It should be noted the case taken against Rangers has not yet been proven or even heard yet.

"All that has happened today is that a sum of money has been set aside if the club were to lose the case."

Whyte earlier dismissed claims that the tax claim, which is expected to be heard in November, could threaten the existence of the club.

He told Rangers TV: "We are told by our counsel that he is confident we can win the case.

"Clearly it's a huge issue for Rangers. It's something we are all concerned about but there is a way to deal with it and it will be dealt with.

"It's not great that it's hanging over the club. It is a major negative but we hope to get it resolved and whatever happens we will find a way through it.

"Rangers will be here and playing at Ibrox long after we are all dead and buried regardless of what happens in the HMRC case - there is no doubt about that."