Iceland CEO Malcolm Walker has blasted a Sunday Times article claiming he had signed a deal with Deutsche Bank to ­finance his purchase of Iceland as "a disgrace" and "wrong on every count".

As speculation over the future of Iceland heats up, Walker told The Grocer that no deal had been signed with any investment bank or venture capitalist. He confirmed discussions were ongoing, but said no decisions had been made.

Walker also gave a progress update on the deal. Vendor due diligence had almost finished, and Walker predicted an information memorandum would go out to selected parties in two weeks time.

Some 67% of the company is up for grabs from failed Icelandic bank Landsbanki, with variations ranging from £750m to £2bn.

Analysts suggest that only Walker who currently owns 23% of the company and Morrisons, which last month appointed Credit Suisse as an advisor, will bid.