Rangers' Wi-Fi providers are seeking to have £300,000 arrested from the club's bank accounts last month set aside until a legal dispute over an unpaid bill is settled.

IT firm, 802 Works Limited, is pursuing the Ibrox side over non-payment of bills. A sheriff granted an arrestment warrant for £300,000 against Rangers on December 31.

At Glasgow Sheriff Court on Tuesday, a hearing was held to argue if the cash should remain ring-fenced. 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 it wants the money arrested from Rangers' bank accounts in case the club goes 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.

Mr Catto told sheriff Ian Miller: "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 that 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 that the its financial position is improving, lenders are in place and that there is no prospect of insolvency.

Rangers allege that the company breached the contract they had with them because the Wi-Fi is not fit for purpose.

They claim that the system does not have the capacity to be used by 50,000 people at the same time, but less than 10,000.

However, 802 Works say they are entitled to the money because the work was carried out and figures relating to how many people would be able to access the system was made known to Rangers.

Lawyers for 802 Works want the money ring-fenced to ensure payment if the club goes into insolvency.

The court was told that Rangers "over a considerable period", has been operating at a loss of £7.5m per year.

Various accounts were lodged at the court including an audited report dated October 2015 showing financial information and an account showing more recent figures that were taken from the clubs account system.

The most recent figures were objected to by the representative of 802 Works. Mr Catto said the audited report showing a full year's accounts and a loss of around 7.5m per year should be preferred.

He said: "These are the only documents that should be looked at when considering if there is a risk of insolvency."

Counsel for the club, Christopher Wilson, told the court that the sum sued for is two percent of the turnover.

He said: "The company is turning over that amount each week."

Sheriff Ian Miller will rule on Friday morning whether the cash should be arrested from Rangers while the legal dispute continues.