The British government has outlined new funding plans for the Northern Rock bank which are designed to support a private sector rescue.
The bank's £25bn Bank of England loan will be converted into government-backed bonds before being sold to investors.
By outlining the plan, the Chancellor of the Exchequer Alistair Darling will have removed the immediacy of Northern Rock's nationalisation.
However if a sale to a private buyer cannot be agreed, the bank could still come under temporary public ownership.
The scheme, drawn up by Goldman Sachs, means that Northern Rock's £24bn debt to the British taxpayer will be split into government-backed bonds which will be sold-off in money markets to investors to help fund a rescue.
One potential private sector rescuer, Sir Richard Branson, said today that his Virgin Group offer would repay the Bank of England loans and save most of the jobs at Northern Rock.
The scheme means that Northern Rock savers' money will be protected by the British government.
Northern Rock shares rose 42% following this morning's announcement.
