However, he conceded the estimate had become ‘common currency’ as a result of recently-proposed cuts including 650 manufacturing posts at NCR.

“I think somebody with a computer has sat down and worked out that is a kind of likely general figure, but I would neither confirm nor deny it,” said Mr Cramb.

“Part of what we are trying to do at the moment is secure as much as we can of the supply chain.

“If you take that £20 million then part of the task is to try and reduce that.

“A fear of a £20 million loss is ‘common currency’, and we have to try and ensure that doesn’t come about.”

In addition to the job losses at NCR, there have been cuts announced at Tesco and Wood Group in recent months, while Dundee University is seeking to avoid compulsory redundancies.

The £20 million-a-year estimate is based on those who have lost their jobs not securing new employment, but efforts are already under way to alleviate that.

It has also been suggested the investment required to secure the long-term economic future of the City of Discovery could be as much as £30 million.

Last week Mr Cramb managed to secure £1.5 million in immediate funding from the Scottish Executive to help workers and suppliers hit by the NCR decision.

A summary of the action plan put together by the team is likely to be made public, although the full version presented to deputy first minister Nicol Stephen is a “private” document.

Today’s meeting of the rapid response group also heard that accommodation has been secured at the NCR plant for an office where support can be provided for affected employees.

Members of the Partnership Action for Continuing Employment team will sit down with each NCR employee to discuss the availability of new job opportunities, retraining or starting up their own business.

A briefing of managers at NCR will take place next week, while efforts are also being made to schedule talks with senior management and unions as part of the consultation process.