American buyout firm RedBird has agreed a deal to take control of the Daily and Sunday Telegraph after a two-year ownership vacuum.

RedBird Capital will buy the stake owned by Emirati royal Sheikh Mansour bin Zayed Sultan al-Nahyan who had bankrolled an earlier bid.

That bid was rejected by the previous government, which passed a law preventing foreign governments owning British newspapers or news magazines.

The current proposed deal will need regulatory approval.

Both Telegraph titles and the Spectator magazine were put up for auction by Lloyds Bank, who seized them from the Barclay family for non-payment of outstanding debts.

In a bold but ultimately unsuccessful move, a consortium of RedBird and Sheikh Mansour’s IMI paid off the Barclay brothers’ debts in full hoping to shortcut the auction process.

However, the fact that the consortium was almost entirely funded by IMI saw the government intervene and prevent it taking majority ownership.

It is thought that IMI will retain a minority stake of less than 15% in the two papers.

Meanwhile, the Spectator was sold to hedge fund billionaire Sir Paul Marshall last year for £100m.

The BBC understands the purchase price will see RedBird IMI get its money back in full.

It brings to an end a two-year limbo period which the Telegraph staff found unsettling and left them concerned that sufficient investment and direction was lacking.

RedBird founder Gerry Cardinale told the BBC he has plans to expand the Telegraph’s reach and subscriber base in the US, believing there to be a gap in the market.

Among other investments, RedBird Capital owns the Italian football team AC Milan.