On Monday, he confirmed that Harrods' boss Mohamed Al Fayed had demanded £1,467576.08 for his legal costs during their High Court battles.

Speaking from his London home, Mr Hamilton said he now had 21 days to pay.

"I might be able to send him the eight pence, but the amount won't be paid," said Mr Hamilton yesterday (Tuesday).

"I haven't seen the breakdown of the costs, but when I do I might have some points to dispute with them."

Mr Hamilton, 52, was due to present a petition for his own bankruptcy last week following his second High Court defeat in the cash-for-questions libel case.

But Al Fayed's solicitors served a bankruptcy statutory demand on him which will be made in court on January 29.

If the money has not been paid, the Hamiltons are likely to lose their treasured home in Alderley Edge.

Yesterday, Mr Hamilton said he felt as he did when presented with a bill for £500,000 after his first High Court defeat in 1999.

"If you can't pay it doesn't matter how many noughts they add to the end of the figure," he said.

"We will have to see what happens, but there may be some more interesting developments yet."

Harrods were unavailable for comment.