Michael Gove is expected to review hundreds of millions of pounds of subsidies that Scottish farmers claim should be handed to them instead of distributed across the UK, the Telegraph understands.

The Environment, Food and Rural Affairs Secretary is expected to set up an independent group to look again at the decision to share the “convergence uplift” funding among the four home nations.

The European Commission announced the extra money in 2013 as a “gesture of goodwill” because of the low area payments made to Scottish farmers under the Common Agricultural Policy (CAP).

But the UK Government instead decided that farmers in England, Northern Ireland, Wales and Scotland would receive the same proportion of the CAP budget over the following seven years as they did previously.

Senior insiders said Mr Gove is “extremely likely” to agree to the review after being lobbied by Alister Jack, the new Tory MP for Dumfries and Galloway, to appoint an “independent figure” to “ensure Scottish farmers receive a fair settlement.”

It is understood a peer will be approached to head the new group, which will consider how the equivalent funds should be distributed after 2020 and Brexit. The current system will remain in place until then.