The Bank of Scotland is believed to have agreed to pay United States television evangelist Pat Robertson around £2 million following the scrapping of a controversial deal.

The multi-million-pound deal to set up a direct banking scheme in the US in the autumn was officially called off following a meeting in the US between Mr Robertson and bank chief executive Peter Burt.

The move came after a public clamour for the deal to be scrapped because of Mr Robertson's remarks about Scotland and gays.

Insiders said the bank had agreed to pay Mr Robertson around £2 million, an amount which represents the sum he has already put into the venture and does not leave him with any profit.

But the bank said yesterday: today: "We are making no comment at all. We released an official statement yesterday [Saturday]."

Mr Robertson is originally believed to have asked for more.

The bank has retained the right to develop the venture with another partner in the US, and is already said to be involved in talks. The bank said on Saturday in a statement confirming that the deal was off: "Dr Pat Robertson and Peter Burt, following a meeting in Boston yesterday, agreed that the changed external circumstances made the proposed joint venture between Robertson Financial Services (RFS) and Bank of Scotland unfeasible.

"Consequently they agreed that the Bank would acquire the interests of RFS in the new bank under the terms provided in the contract."

"In reaching this agreement Dr Robertson expressed regret that media comments about him had made it impossible to proceed."

The bank is believed to have lost between 400 and 500 customers since the partnership with the religious broadcaster was announced in March this year.

Former moral majority leader Mr Robertson, who is also the author of 10 books, has been under pressure since news of the deal broke because of his outspoken views on homosexuality.

On a recent cable television programme, he described Scotland as a "dark land" due to its acceptance of gays and lesbians.