Mr Andy McCarter, the director of Fruit of the Loom's spinning operations in Derry, is expected to take over the running of the Irish operations, the role currently held by his brother Mr Willie McCarter, The Irish Times has learned.

The current chief executive and two other directors are currently in dispute with the company over their threatened redundancy

Meanwhile, the group yesterday moved to reassure its 3,500 Irish workforce of its continuing commitment to Ireland. A statement last night said Fruit of the Loom "remains committed to its Irish operations where business will continue as usual". The redundancies are part of a European re-organisation and the three positions will not be filled, the statement added.

Negotiations are understood to have been continuing yesterday between the US company and the three directors, Mr Willie McCarter; his brother Mr John McCarter, who is sales director; and the finance director, Mr Seamus McEleney. The three men have sought a High Court injunction against redundancy notices served on them this week. The application was adjourned for two weeks.

It is believed that Fruit of the Loom made a fresh offer of compensation after the adjournment but that this was not accepted. The negotiations are expected to continue for some time but to be concluded before the application is heard in the High Court in Dublin. If accepted, the three directors will leave the company.

If they depart, the Chicago-based Fruit of the Loom corporation is expected to promote Mr Andy McCarter to head up the Irish operations. The other Irish director, Ms Mary Cullen, is also expected to play a more prominent role in running the company.

Ms Cullen has previously successfully fought a legal battle against the corporation, following an attempt to make her redundant some time ago.

The elevation of Mr Andy McCarter to the head of the Irish operations would be seen as offering considerable reassurances to the workers and the trade unions about the continuation of the current operations which employs 3,500.

Mr Bernhard Hanson, Fruit of the Loom's director of European operations, had earlier offered assurances about the group's continuing commitment to its Irish workforce to SIPTU's Donegal region representative, Mr George Hunter.

He said he was now satisfied that the jobs were "safe in the short to medium term".

Mr Hanson stressed that assurances given to SIPTU in June - that the company was currently trading well and that there would be no return to short time working at least for the rest of this year - still held.

Mr Andy McCarter made the initial contact with Fruit of the Loom in the 1980s, while seeking a joint venture partner for the family's Co Donegal-based company in the US.

He had spent a year in the US before the deal which forged the link to bring Fruit of the Loom to the Inishowen peninsula in 1987. At that time he was quoted as saying that the companies would enjoy a close working relationship with their American partners, "even though they would call the shots".

Fruit of the Loom initially bought a majority stake in the WP McCarter group and gradually gained 100 per cent of the group by buying out the various family members over the years.

His brother, Mr Willie McCarter, then took over as chief executive of Fruit of the Loom's Irish business and the family has continued to be involved in the running of the company.