Old firm rivals Rangers and Celtic are set to join forces and launch a new TV channel to plug the gap left by Setanta's collapse.

Setanta's original deal was originally worth £125million over four years but have only been offered half that figure over five years by Sky and American broadcaster ESPN.

Both Glasgow clubs felt the offers were derisory and are planning on taking matters into their own hands and are willing to stump up £25million for two years in a move which is expected to receive support from the rest of the SPL.

Rangers chief executive Martin Bain said: "I can confirm that the Old Firm have had talks regarding the current broadcasting arrangements.

"We are deeply disappointed at the proposals on the table and are exploring other avenues. At this stage I don't want to comment further."