The UK’s oldest travel agent has around 24 hours to agree a rescue deal before it falls into administration, according to stakeholders including banks such as RBS and Lloyds.

Thomas Cook could collapse by Sunday unless it secures the extra £200million.

Thousands of holidaymakers face being stranded abroad as the travel agent frantically tried to sort its financial woes.

Currently there are 600,000 Thomas Cook customers on holiday - 150,000 to 160,000 are British.

UK travellers on a package holiday are ATOL-protected meaning the Government would be forced to pay out an estimated £600million.

However, holidaymakers who are booked on flight-only packages could be stuck abroad if they don't make it home within the next 24 hours.

The coming hours will prove crucial to the survival of the 178-year-old company, which employs around 21,000 people, including 9,000 Brits.

It was reported that the Government is unlikely to intervene amid concerns over the firm’s long-term stability.

"We do not speculate on the financial situation of individual businesses," the Department for Transport said.

The CAA said it would not comment on the financial situation of individual businesses.