Tesco's lawyers are set to reduce the £800,000 bill presented to The Guardian for costs incurred over a false story that claimed Tesco had avoided up to £1bn in corporation tax.

Carter Ruck are "ready to move" on the bill, according to a source.

The Guardian's editor Alan Rusbridger wrote this week that he was contesting the £800,000 bill. The damages awarded for the libel are understood to be £5,000. "Our journalism was faulty: Tesco deserved, and got, an apology and correction, not once but twice," wrote Rusbridger. "But the costs of the action dwarfed any damages."