The former wife of ex-Tory minister Jonathan Aitken has made a £1.1m offer to his creditors, it has been reported.

Lolicia Aitken is believed to have offered the sum in order to prevent the eviction of her ex-husband and their three children from the family home, which is valued at £1.8m, in Westminster.

'Money owing'

The Times reported on Monday that Aitken, a former chief secretary to the Treasury, held a secret meeting with creditors The Guardian and Granada on Friday at which the proposals were presented.

Although the family home has reportedly been transferred into his ex-wife's ownership, the creditors have questioned the terms of the divorce settlement.

The Guardian and Granada have been seeking closer to £2.2m from Aitken following the collapse of his libel trial against them in 1997, when he lied on oath.

A spokesman for The Guardian said: "The Guardian is examining the proposal Mr Aitken put to his creditors on Friday.

"The Guardian wants to bring about a resolution to the situation but the money owing is substantial.

"We have not lost sight of the great financial cost the paper would have had to bear had Mr Aitken's high-profile and dishonest libel action succeeded."

Aitken was released from prison earlier this month after serving seven months of his 18 month jail sentence for perjury and conspiracy to pervert the course of justice.

He must wear an electronic tagging device and is under curfew which prevents him from leaving his home between 7pm and 7am.