The disgraced former First Minister of Scotland, Henry McLeish, is expected to announce his retirement from politics because of the expenses scandal that forced him from office.

Mr McLeish, who last month was branded a liar by the senior Labour MP Rosemary McKenna in what was seen as an attempt by the party to distance itself from him, is believed to have made the decision to "go with some dignity" before next year's parliamentary elections.

The 53-year-old MSP for Central Fife was forced to resign from Scotland's top post in November after he admitted double-claiming office expenses. Despite an attempt to ride out the humiliation as a backbench parliamentarian Mr McLeish has come under repeated attack.

Although he has been selected as a candidate by the Central Fife constituency party to fight the election he has yet to be endorsed by the Scottish Executive of the party. The executive is understood to have refused to confirm his appointment while a Fife police investigation into the affair is continuing.

Last month Mr McLeish was accused of hypocrisy over allegations that he used taxpayers' money to pay back £38,500 to the House of Commons, which was the amount calculated to have been erroneously claimed by Mr McLeish as office expenses.

Yesterdayhe refused to comment on speculation about his future before making any announcement to the full Scottish Parliament, which returns next week after the summer recess. While nobody at Mr McLeish's constituency office in Glenrothes, Fife, or at the Scottish Labour Party was able to shed any light on a possible announcement, there were suggestions that a decision to stand down would be welcomed by some senior figures in the party.