Excel file created in Toad cannot be opened by Excel 2010. Gives error "Excel found unreadable co (4231831)

In Toad, export data using "Select to File" in automation. The file is generated (Excel 2003). But if trying to access using Excel 2007, the error is given.

"Excel found unreadable content in 'XXXXXXX.xls'. Do you want to recover the contents of this workbook? If you trust the source of this workbook, click Yes."

If the "yes" is selected the data should be recovered successfully. The file can now be saved again and should not run into the error again. If using 2003 to open there is no error.

If using quick export from grid, to export data to an Excel Instance, it export directly into an opened Excel and is displayed at that time without any issues. The file can be saved and later reopened in Excel 2003 or 2010 without any issues.