Ministers have rejected a proposal to decriminalise sex between young teenagers, opting instead for a compromise involving referral to the childrens' hearing system.

As first revealed in The Herald, the Scottish Law Commission recommended complete de-criminalisation of sexual relations between youngsters between 13 and 16.

Now it has emerged that this is a hot political potato too far for ministers, and they are preparing to veto the commission finding, ruling out full decriminalisation and opting instead for a new use of the children's panel system.

"We will not be acting on the recommendations to decriminalise under-age sex," said a government aide. "It would potentially conflict with a lot of other messages we are trying to portray, in areas such as sexual health and the fact that it's not good to have sex under 16.

"The way to deal with this is not to send out mixed messages to under-16s. Saying it is OK would mean that people would inevitably see this as lowering the age of consent. What we are proposing is not decriminalisation."

The recommendation, which some critics claim could be seen as condoning under-age sex between teenagers, was made in the Scottish Law Commission's draft legislation on rape and other sexual offences.

Scores of parents, children's groups and churches gave warning in their written responses that the move would send out the wrong message and lead to increases in teenage pregnancies, exploitation and sexually transmitted diseases.

However, organisations including Victim Support Scotland, Barnardo's and the Scottish Children's Reporter Administration (SCRA) support the move.

The review on rape and sexual offences was commissioned by the previous executive three years ago following confusion about the definition of consent and the exclusion of male rape.

Respondents to the 200-page draft have agreed with almost all its recommendations, with the exception of No 29, which proposes that sex between consenting children aged between 13 and 15 should be decriminalised.

Under the law, the age of consent is 16, but there are special rules which apply to a girl aged under 13, and if two consenting 15-year-olds were to have sex, the boy, but not the girl, could be prosecuted in a criminal court if referred to the SCRA. The proposals are that it would be statutory rape to have sex with a boy or girl under the age of 13 and concerns about consenting sex between vulnerable 13 to 15 year-olds could be referred to the SCRA.

The paper makes it clear adults over the age of 16 would be, as now, committing an offence for sexual activity with a child under the age of 16.

The current idea is to treat relations between teenagers aged 13 to 15 as a matter for reporting to the children's hearing on the basis of the welfare of those involved.

But it has been made clear that if the police believe coercion or a pattern of predatory behaviour is involved it will go the fiscal for prosecution.