Britain’s steel industry is set to be saved from collapse by two little-known financiers who hope to revive the "British Steel" name, The Telegraph can disclose.

Marc and Nathaniel Meyohas, two brothers behind investment firm Greybull, are putting the finishing touches to buy the Scunthorpe steelworks from Tata, pumping £400m into the struggling plant and saving a total of around 9,000 local jobs.

The deal is set to be announced as early as Wednesday. City sources believe the entrepreneurs could then look at a possible deal to save the iconic Port Talbot plant in south Wales.

The disclosure of the potential deal will be a major relief to David Cameron and the Government amid speculation that the British steel market was dead after Tata announced plans to pull out of the country.

The announcement had led to emergency Government meetings amid accusations that the EU was hindering a potential deal.