Monarch Airline’s multi-million pound rescue bid will go down to the wire this week, with a financial lifeline expected to come through just hours before the extension on its operating licence is due to expire on Wednesday.

The low-cost airline is locked in talks with major stakeholder Greybull Capital and Boeing, and expects to unveil a massive funding overhaul to satisfy the Civil Aviation Authority’s financial health check-list and clinch a new Air Travel Operators’ Licence (Atol).

Monarch was granted a stay of execution by the aviation authority just four hours before its Atol was due to expire at the end of last month, and now faces another looming deadline on Wednesday when the twelve day extension expires.

Monarch boss Andrew Swaffield has assured staff that the deal will go through but warned that it will not conclude before the day of the crunch deadline.

In a letter sent to Monarch Airlines staff on Friday, Mr Swaffield said that the legal and finance teams are still working to “dot the i’s and cross the t’s on the largest investment in our history”.

“As soon as we are able to give details of our investment and confirm the renewal I will. But to manage your expectations, this will be on the 12th (Wednesday),” he said.