Concerned Alex Rae fears the Old Firm game could send a financial shockwave through Scottish football.
Scenes of mass rule breaches after Rangers were crowned Premiership champions last weekend saw the Scottish Government put their visit to Celtic under the microscope.
It has led to Nicola Sturgeon issuing a warning that the game could be at risk, with Holyrood issuing a stay at home message to supporters ahead of derby day.
While confident the fixture will be greenlit by the authorities, Rae told Clyde 1 there could be some unforeseen blows to the national game as a whole if the axe falls.
He believes broadcaster Sky could demand some money back if the game doesn't go ahead, and fears for the post-split Old Firm clash as well.
Rae also has concerns over the return of fans to stadia across the country following the scenes in George Square and at Ibrox.
He said: “The discussions throughout this week will be important. I’m of the opinion that the game will go ahead.
“I think the key thing as well is obviously people staying safe. We have a very lucrative deal with Sky, and we cannot afford for them, further down the line, to say 'two of the showpiece games, both Old Firm games have been pulled and that is worth X-amount of money.'
“If they try and reclaim that the impact on the football world in general could be severe. We have to box clever.
“I think for the individuals who are involved in that decision [to gather in crowds] it’s time to step back, take a breath and stay away from the game.
"If the government did pull it, we’ve spoke about it time after time, the importance of trying to get football out to the general public, and for that to get pulled now when the numbers are actually reducing, I think it would be a real shame."
