Coulson denies trying to "destroy" Tommy Sheridan

The former News of the World editor told Sheridan he had not been on his radar until his successful defamation action against the newspaper in 2006.

Sheridan accused Mr Coulson of trying to undermine him politically and break his relationship with his wife.

However, Mr Coulson, 42, said Sheridan had a "parallel universe" running through his mind.

Sheridan and his wife Gail, both 46, deny lying under oath during his defamation action against the News of the World, which followed the newspaper's claims that he was an adulterer who visited swingers' clubs.

He won 200,000 in damages after the newspaper printed the allegations about his private life.

Mr Coulson was giving evidence for a second day at the High Court in Glasgow.

He told the court that the newspaper spent 200,000 on a video allegedly showing Sheridan making confessions about his private life, but beyond that he had no involvement in the budget processes in relation to stories published about the ex-MSP.

Sheridan asked: "How much money were you aware that the News of the World was willing to pay to destroy me?"

He answered: "I had no interest in destroying you."

Mr Coulson told the court he was not involved in the stories the Scottish News of the World printed about Sheridan in November 2004.

He told the former Scottish Socialist Party MSP: "You were not on my radar, I don't mean to be offensive but my efforts were largely concentrated on the English editions of the paper.

"I didn't really have a view on you one way or another."

Sheridan accused Mr Coulson of having "collective amnesia" about what went on while he was at the News of the World, where he was editor between 2003 and 2007, and suggested alternatively that he was lying, which Mr Coulson denied.

Sheridan said: "I don't think you have been candid at all with the court. I think that your newspaper was involved in concerted efforts to try and undermine me politically and trying to break my relationship with my wife."

He also suggested there had been "concoctions of video tape".

Mr Coulson replied: "These things may be true in the parallel universe running in your mind."

Sheridan touched on Mr Coulson's current position, saying: "You are beside the Prime Minister, David Cameron. We will have to hope you have your eye more on the ball than you did when you were editor at News of the World."

Earlier, Sheridan asked Mr Coulson whether he knew of Steve Whittamore, a private investigator who, he told the court, was convicted in 2005 of illegally accessing data and passing it to journalists.

Mr Coulson said he had heard of Mr Whittamore but did not have any contact with him.

Sheridan said that information seized from Whittamore during an investigation into his activities suggested 21 News of the World reporters used his services.

Mr Coulson said he did not instruct any of his journalists to use Whittamore and was not aware of his staff using him in relation to his illegal activities.