Mr Green has made two previous offers for M&S

Mr Green has raised his proposed takeover offer for M&S to �4 a share.

The offer is 8% higher than his previous one of about 370p per share, but will have to be recommended by the M&S board before becoming a formal bid.

Meanwhile, Mr Green's request for a meeting with the pension fund trustees of the firm has been turned down.

Mr Green said on Thursday the new offer had the support of Schroder Investment Management Limited, which owns around 1.2% of M&S shares, conditional upon acceptance of the offer by the retailer's board.

It comes a day after M&S's biggest shareholder, US-based investment group Brandes said it would support his offer if it was backed by the M&S board.

It has agreed to sell its 11.7% stake in M&S if he makes a formal bid.

Mr Green's latest offer values M&S at around �9.1bn ($17bn).

"I think the Marks and Spencer board will basically have to decide what they want to do," Mr Green told the BBC.

I think we still need to hear from M&S what their plans for the business actually are Robert Talbot, Isis Asset Management Q&A: The takeover battle

He said they could accept the offer "on the table", recommend its acceptance, and allow Mr Green access to its books, or they could reject the offer.

"There is nothing to negotiate," he said. "This is it, this is the price."

Shares in M&S gained 2% at the close of trade on the London Stock exchange, up 8.25 pence at 368.25 pence.

'Bid merits consideration'

The M&S board met on Wednesday afternoon to consider its response, without coming to any conclusion.

Standard Life, owner of 2% of M&S and thus one of its larger institutional shareholders, has said the proposal "merits consideration".

"Marks & Spencer will now have to clearly articulate their new strategy under Stuart Rose and then respond to shareholder views on the strategy before deciding whether to accept or reject the bid," Standard Life said in a statement.

And Robert Talbot of Isis Asset Management, which holds M&S shares, said the new bid had a better chance of success than Mr Green's previous offers.

"I think it's an offer that shareholders would want to take seriously," he told BBC Radio 4.

"But lots of shareholders will have differences of opinion as to what is the right price for them to sell.

"And I think we still need to hear from M&S what their plans for the business actually are."

Newly installed M&S chief executive Stuart Rose is due to give an update on cost savings at M&S on 12 July.

Pension deficit

Mr Green, owner of Bhs and High Street fashion stores Top Shop, Dorothy Perkins and Miss Selfridge, has long signalled his desire to take over the retailer through his bid vehicle Revival Acquisitions.

He has now made three offers for M&S.

1. First Philip Green offer 2. M&S reject bid 3. Second Philip Green offer 4. Second M&S rejection 5. Latest offer from tycoon Check M&S's share price

The first two - one offering 310p per share in cash and a 25% stake in Revival, and a second cash offer worth about 370p a share - were both rejected.

Thursday's cash-only approach suggests a cash and share alternative comprising 335 pence a share in cash and a 30% equity interest in Revival.

On Tuesday the UK's Takeover Panel gave Mr Green until midday on 6 August to make a formal offer for the High Street favourite.

Meeting

But the deal still hinges on the support of the M&S board, and other conditions, including being allowed a closer look at M&S's accounts.

"This is the biggest amount of money ever put up in Europe," Mr Green said.

"Most people would understand that we need to get an element of comfort because we are on the outside looking in. That can't be unreasonable."

Separately, trustees of M&S's pension board have declined an invitation to meet Mr Green.

Mr Green is said to be looking to find out how much the pension fund's liabilities and shortfall may be taken into account in any takeover.

But the trustees said it was not their role to either help or hinder any potential bidder for the company.

They added that they believed they were not in a position to share any information about the pension scheme which was not already public knowledge.

M&S disclosed a pensions deficit of at least �585m in March.

Property values

In the meantime, investors are eagerly awaiting Mr Rose's 12 July update, which is expected to include savings from the supply chain, a revaluation of M&S property and initiatives to drive like-for-like sales.

Retail analyst Nick Bubb of Evolution Beeson Gregory said he thought the review would be "pretty punchy" and that profits forecasts may be moved up.

"This is not a joke offer (from Mr Green) but, given all that M&S is doing to improve profitability, I think it's not going to be quite enough," he said.