American businessman Bill Miller has been granted preferred bidder status by Rangers administrators Duff and Phelps, the club have confirmed.

The tow truck tycoon was vying for control with the Blue Knights consortium led by former Rangers director Paul Murray, and backed by Sale Sharks owner Brian Kennedy, and now appears to have won the race to succeed Craig Whyte as owner.

Miller last month unveiled plans for an 11.2million pound bid for Rangers which would create what he described as an "incubator" company while Duff and Phelps bid to take the club out of administration through a Creditors Voluntary Arrangement.

The tow truck tycoon was vying for control with the Blue Knights consortium led by former Rangers director Paul Murray, and backed by Sale Sharks owner Brian Kennedy, and now appears to have won the race to succeed Craig Whyte as owner.

Miller last month unveiled plans for an 11.2million pound bid for Rangers which would create what he described as an "incubator" company while Duff and Phelps bid to take the club out of administration through a Creditors Voluntary Arrangement.

The club's official website reported how Paul Clark, joint administrator, told Rangers staff at a meeting at Ibrox this morning: "We would like to thank all parties for their efforts in seeking to submit bids which preserve the long history and success of the club.

"We are delighted to announce that today we have received an unconditional bid for the business and assets of Rangers Football Club plc from Mr Bill Miller which has been accepted in principle and he is now the preferred bidder. Mr Miller now proposes to complete his transaction by the end of the season."

The development was predicted by The Herald earlier this week.

In revealing his plans on April 20 in a lengthy statement, Mr Miller claimed to have found a new solution, after deciding a straight CVA would be too risky and prolonged.

The American businessman said: "In order to preserve the club's history, records, championships and assets, I will put the heart of the club into an 'incubator' company while Duff and Phelps works to make the sick patient healthy through a CVA process that effectively works to radiate the toxicity of past administrations' sins out of the patient while the healthy heart is preserved and moves forward."

Supporters have made it clear they have reservations over Mr Miller and a possible newco scenario. Duff and Phelps said at the weekend a newco could be in play by May 11.

Scottish Premier League chief executive Neil Doncaster earlier this week gave a strong hint he would be amenable to a newco Rangers joining the competition.

SPL clubs met on Monday to vote on plans to dock such a club points and financial income during their initial years. However, days after Rangers fans warned of recriminations and marched on Hampden to protest against Scottish Football Association sanctions, the SPL clubs adjourned their vote until next Monday.

Mr Miller had been looking for clarity and comfort over football sanctions and, although he did not get the former, he must have taken solace from Mr Doncaster's comments later.

Mr Doncaster does not appear to share Rangers fans' instinctive antipathy of a newco club. He has said: "Clubs can theoretically shed 100million pounds of debt, agree a CVA at a penny in the pound and come back in with all that debt shed. Clubs can do that now within the rules.

"Oddly enough you might end up with more money going to creditors through the newco route than through a CVA."

Rangers manager Ally McCoist, meanwhile, has had "positive" discussions with Miller. Speaking after last night's 5-0 win over Dundee United, McCoist said: "I think everybody has got to be given a chance, whether it's Bill Miller or whoever it may be.

"If we have to go a couple of steps back but can take the club forward then so be it. That's certainly a better proposition than what could be."

McCoist has had a number of conversations with Miller by telephone and was asked whether he believes the tycoon has the best interests of Rangers at heart. He said: "I've spoken to him and it's not ideal because I know Bill would rather I was next to him and looking across the table and so would I. But he is obviously across in America and that's not possible.

"But every conversation I've had with Bill - and indeed I've met his representatives - have all been absolutely positive. They have asked the right questions and I would like to think I've asked the right questions back."

Mr Miller later issued a statement through the club in which he promised to end the culture of over-spending. He said: "It is a great honour and privilege to have the opportunity to buy Rangers Football Club. "I respect the club as one of the world's great sporting institutions and one of the UK's most venerable football clubs. "What Rangers, which includes supporters, players, staff and anyone with the club at heart, have been put through, particularly in recent months, is a travesty and from what I can see they have been badly let down by a number of individuals. "This will not happen on my watch should I become the custodian of this great club. "Under my stewardship, Rangers will be managed with fiscal discipline such that the club not only conforms to UEFA financial fair play regulations but also such that Rangers will never have to suffer this kind of anguish again. "From now on, Rangers will live within its means - no excuses. "I have fought hard to try and offer Rangers a fresh start and I hope all Rangers fans will continue to rally round the club as we endeavour to leave behind this distressing chapter in the club's history. "Finally, and perhaps most importantly, we have worked hard to ensure that there is no loss of history, no loss of tradition and no liquidation of Rangers Football Club. "I wouldn't have it any other way."