Rangers’ Wi-Fi providers have failed to have £300,000 ring-fenced from the club’s bank accounts while a legal dispute over an unpaid bill continues.

IT firm 802 Works Limited is pursuing the Ibrox side over non-payment of bills and wanted the cash set aside over fears Rangers could go insolvent while the dispute rumbles on.

A sheriff granted an arrestment warrant for £300,000 against Rangers on December 31 but on Friday it was recalled by Sheriff Ian Miller, who said 802 had failed to satisfy the test that there was a danger of Rangers being on verge of insolvency.

A hearing was held to argue if the cash should be frozen from the club’s accounts at Glasgow Sheriff Court on Tuesday. The IT firm claim Wi-Fi at Ibrox stopped when the internet service provider Virgin Media withdrew its services due to non-payment of bills.

Simon Catto, counsel for 802 Works, which began providing Wi-Fi at Ibrox in 2013, argued they wanted the money arrested from Rangers' bank accounts in case the club went insolvent before the dispute is resolved in court.

He said he believed the legal dispute would not be concluded before the middle of next season and wanted the cash set aside in the meantime.

Sheriff Miller ruled on Friday that there was a clear willingness of shareholders to provide funding to Rangers through loans.

A profit and loss statement dated December 31, 2015 provided to the court also showed half-year losses were significantly reduced to £500,000, down from £2.6m at the same point in 2014.

However, it was also ruled that 802 did satisfy there is a "prima facie case". The total bill was £900,000 and Rangers paid the first two instalments previously.

The final instalment was due in June 2014 and has been reneged upon since. Rangers knew this but only recently began an independent report into the capability of the Wi-Fi system. That report has not concluded and was not provided to the court.

Mr Catto told Sheriff Miller during Tuesday’s hearing: "The company (Rangers) cannot pay this of its own accord as it is operating at a loss. It has to come from somewhere else."

He told the court Rangers are "entirely reliant on somebody else funding" any payment if the club are told to pay up the £300,000 being sought by the IT firm.

However, counsel for Rangers argued its financial position is improving, lenders are in place and there is no prospect of insolvency.

Rangers allege the company breached the contract it had with them because the Wi-Fi is not fit for purpose. They claim it does not have the capacity to be used by 50,000 people at the same time and insist the actual figure is less than 10,000.

The club are having the Wi-Fi system independently assessed, with the prospect of launching a counter-claim to recover the £600,000 already paid to 802.