ALLY McCOIST'S fate as Rangers manager is set to be sealed at a meeting with Ibrox powerbrokers Derek Llambias and Sandy Easdale this Wednesday, the Sunday Herald understands.

The 52-year-old, who was said to have "surprised" the board when he informed them on Thursday of his intention to work his 12-month notice period at the club - news that was subsequently made public ahead of Friday night's defeat to Queen of the South - will be accompanied by legal counsel for the talks, which are likely to thrash out his exact point of departure from the role he has held since succeeding Walter Smith in July 2011.

The timescale is important because of the impending club AGM on December 22, an occasion which already seems likely to be stormy. Rangers reported £8.3m losses last month and need to raise a similar amount before the end of the financial year if they are to stay afloat, while Llambias is midway through a series of savage cut backs at the club. After the departure of seven or eight administrative staff at the club in recent weeks, including the manager's secretary, academy director Jimmy Sinclair is widely expected be the latest casualty in the next few days. Some sort of resolution on the McCoist affair, one way or another, before the AGM therefore seems inevitable.

Llambias, the non-executive director and a close ally of Mike Ashley, and chairman David Somers were in London this weekend, and are likely to spend the next few days working out their strategy ahead of the talks. Essentially they are mulling over three options. Either McCoist stays in position, an outcome which seems unlikely given the heightened feelings on each side and the alarming sense of drift witnessed in the 2-0 defeat to Queen of the South, or he goes on so-called 'gardening leave' for the remaining 12 months of his contract whilst someone else takes over team affairs. Alternatively, money could be found to settle the estimated £400,000 which is outstanding. While members of his backroom team such as Kenny McDowall and Ian Durrant would be hugely reluctant to take over first-team duties given such a scenario, even on a caretaker basis, it is at least worth pointing out that McDowall spent 10 years at Celtic, rising to the role of a respected reserve team coach, while Durrant currently coaches both the first team and the reserves, and has one match as caretaker under his belt, a 3-2 Scottish Cup defeat to Dunfermline when he filled in after the departure of Paul Le Guen back in 2007.

Both parties in this delicate negotiation will be determined to tread carefully, not least the Ashley camp, given that the businessman's mishandling of the departure of Newcastle United's Kevin Keegan led to an independent arbitration panel awarding Keegan a £2m payout for constructive dismissal.

Nonetheless, the Sports Direct tycoon appears to be exerting increasing influence on the club - regardless of SFA chief executive Stewart Regan's pleas for further clarity on his plans - and may be keen to install his own man in the manager's office. The likes of Stuart McCall, Terry Butcher, Billy Davies and Derek McInnes have been suggested as plausible replacements but all may be wary that taking the job in such circumstances would leave them open to the accusations of disloyalty from supporters.

Meanwhile, the Rangers players were back in training yesterday, with McCoist reportedly cancelling a scheduled Christmas party in the wake of Friday night's disappointment in Dumfries, where the margin of defeat could well have been greater than the eventual 2-0 scoreline.

There was one crumb of comfort for the beleaguered Ibrox club yesterday, however. Plunging temperatures in Fife put paid to Hearts' efforts to get their Championship match with Cowdenbeath played, meaning that the Ibrox club's arrears at the top of the table remain at nine points. That match has been rescheduled for December 23, just one day after that potentially turbulent Ibrox AGM.

Whether McCoist has presided over his last Rangers match, the row will do little to engender enthusiasm amongst the Rangers support. While he remains manager, McCoist still hopes supporters turn out to support their team, starting at Ibrox next Saturday against Livingston. "I understand there are a lot of reasons for some supporters staying away but as manager of the football club I have to say we would far rather be supported in great numbers rather than small numbers," he said. "But it doesn't matter if it is one thousand or fifty thousand, the focus on the job is still the same for the players and that has to be the way."