Ian Baillie has written to the health minister

The church denied one report that it was set to announce the closure of the homes next month.

But it admitted that it needs at another �2.5m a year to keep them open.

Director of social work Ian Baillie said it would be "surprising" if the Church of Scotland withdrew from the whole service - but stressed that the deficit had to be brought under control.

He has written to Health Minister Malcolm Chisholm saying that the Kirk can no longer afford to subsidise the pensioners' places.

"I am optimistic that there will be a resolution although we can't say whether they will come up with all the money," he said.

Supporting government

"But if the government does not resolve this issue then homes will have to close."

The Kirk is currently paying about �100 of the weekly cost of care, which averages �370 for each person in the homes.

Mr Baillie said that the church had been supporting local and central government for the last decade by meeting this difference.

"I have made it clear that we will not continue to do that forever and I do think it is time for this government to resolve the issue.

Malcolm Chisholm: "Action will be announced"

"We are feeding into our reserves. We feel we have done enough and we can't do this any longer," he said.

A Scottish Executive spokesman said it was doing "everything possible to bring this matter to a satisfactory conclusion".

And Mr Chisholm said: "We set up a group last year to look at the whole issue of fees in the care home sector.

"I am currently discussing with Cosla how to carry forward the implementation of that group's report, so action will be announced soon."

The issue will be discussed at meeting of the Kirk's board of social responsibilities next month.

Any decision will then have to be ratified by the General Assembly of the Church of Scotland.