THE SNP has rejected calls to let another party chair the Holyrood inquiry around Alex Salmond, despite its potential to embarrass the government.

Nicola Sturgeon's party insisted on exercising its right to convene the inquiry, turning down demands from the opposition to relinquish control.

Parliament’s business bureau agreed today to create a special committee to look into the collapse of the Scottish government’s sexual misconduct investigation into Mr Salmond.

The former First Minister won a judicial review at the Court of Session earlier this month after forcing ministers to admit their probe was unfair, unlawful and tainted by apparent bias.

The government’s defeat left taxpayers with a £500,000 legal bill.

The inquiry is expected to examine a series of meetings between Mr Salmond and Ms Sturgeon last year, while he was under investigation by her officials.

Scottish Labour leader Richard Leonard last week urged the First Minister to allow an opposition party to chair the probe in order to maintain public trust.

“This is an unprecedented situation and Nicola Sturgeon must agree that this inquiry will be chaired by an opposition MSP. Nicola Sturgeon should do the right thing,” he said.

As the largest party in parliament, the SNP has the automatic right to the position.

However it is understood that Graeme Dey, the SNP minister appointed by Ms Sturgeon to sit on the business bureau, was unmoved when the idea was put to him.

Nine MSPs will now sit on the inquiry, with an SNP convener and Tory deputy convener.

In total, there will be four SNP MSPs, two Tories and one Labour, LibDem and Green.

Mr Salmond last week appeared in court charged with two attempted rapes, nine sexual assaults, two indecent assaults and one breach of the peace.

He vehemently denies any criminality.

The Holyrood inquiry is expected to mothball itself until after the criminal proceedings.

It is then expected to take evidence over several months, possibly in the run up to the next Holyrood election.

Scottish Tory chief whip Maurice Golden said: “I am pleased progress has been made on the creation of this committee which will investigate matters of significant importance.

“However, we are disappointed the SNP has refused to forfeit convenership of a committee probing issues which have occurred within its own party.

“There will be further opportunities in coming weeks for the nationalists to reconsider this move, and voters will expect them to do exactly that.”

Labour MSP Neil Findlay said: "Labour argued against the SNP chairing this committee during the meeting, but did not want to block establishing the committee.

"It is now a matter for the SNP to decide if it thinks chairing the committee is appropriate - ultimately the election of a convener is a matter for the committee so the option is still open for an MSP from an opposition party  to chair the committee."

Scottish LibDem leader Willie Rennie said: “All parties have unanimously agreed to the establishment of this committee and its remit and timescale are now being finalised.

“We have previously suggested that the SNP should consider stepping aside from chairing this committee.

“However, it is now up to them to put forward a convenor who can command the respect of parliament.

“This committee will address the concerns that have arisen over the actions of the First Minister, her advisers and officials. Its purpose will be to give confidence that people can make complaints about harassment in the future and have their complaint dealt with seriously and effectively.”

A Scottish Parliament spokesperson said: “Bureau members unanimously agreed to the establishment of a 9 person committee, convened by a member of the SNP with the Deputy Convener coming from the Conservative Party.

The Bureau will finalise issues around remit and membership at its next meeting.”

An SNP spokesperson said: "This is a matter for the Parliamentary Bureau, in which all Holyrood parties are represented.”