Gordon Strachan last week claimed the Dane, a £2million signing from Real Madrid in 2006, did not fit into his system and would never play again.

But the 32-year-old's agent, former Manchester United full-back John Sivebaek, insisted his client was happy to remain in Glasgow.

Gravesen is on a reported weekly wage of £40,000 and due a £1million loyalty bonus if he sees out the final year of his contract.

He spent last season on loan at former club Everton after losing his first-team place at Parkhead, but did not reach the heights of his first spell on Merseyside.

He was left behind as the Celtic first team trained and played friendlies in Portugal last week and was substituted at half-time in a reserve victory over Livingston.

His continued presence at Parkhead, alongside the out-of-favour Bobo Balde, is denying Celtic manager Strachan funds to strengthen his squad.

Celtic have supplemented their title-winning squad with just one newcomer, former Derry winger Pat McCourt, who has missed much of pre-season through injury.

A deal for Romania and Auxerre defender Gabriel Tamas appeared to collapse last week over finances.

McGarvey believes the club are paying for their generosity to Gravesen and Balde, who has rejected moves to England, but he insists the players should feel no shame over their stance.

McGarvey revealed in his newly-published biography, Totally Frank, that he was paid £300 a week by Celtic when he joined in 1980, and recounts occasions during his career when he was promised money that was never delivered.

"Celtic are trying to get Balde and Gravesen off the wage bill, which is £70,000 a week," said McGarvey, who scored the winning goal in Celtic's 1985 Scottish Cup final win over Dundee United.

"I think they have got to get them off their wage bill before they can bring anyone else in.

"But Gravesen is only doing what any other guy in the world would do - staying and getting the money.

"I don't think he is to blame. What player is not going to sign a lucrative contract? I think Celtic are to blame for giving him it.

"If I had an agent I would have earned far more money, that's for sure. We had to make business decisions but I was not a business person.

"Agents are business people who are clever at what they do and that's why clubs don't like them."