Kenny Miller is set to knock back a move to Birmingham City, despite Rangers accepting a £1million package for their top scorer.
Sportsmail understands the 22-goal Scotland striker would prefer to switch overseas, possibly as a free agent this summer, with an Italian club now thought to have emerged as a realistic option.
Birmingham are willing to pay Rangers £600,000 up front for Miller, plus at least another £400,000 in add-ons - including some relating to their survival in the English top flight.
That was reluctantly deemed acceptable by the Ibrox hierarchy, who had agreed to keep the player informed of any realistic bids after he rejected offers to extend his contract. The 31-year-old is, however, thought to have little desire to return to the Midlands, having previously played for Wolves and Derby.
He is also believed to feel he could land a more lucrative deal and is content to sit tight this early in the transfer window.
Birmingham's bid sparked a frantic day of activity, with Rangers having an approach for David Goodwillie dismissed by Dundee United.
The 21-year-old was Walter Smith's first choice as Miller's potential replacement and Rangers effectively offered to pass on the funds they would receive from Birmingham.
United are, however, seeking at least £1m in hard cash for Goodwillie before add-ons are considered - placing him out of the Ibrox club's financial reach.
The restrictions enforced by Lloyds Banking Group mean that not a penny of additional transfer funds can be made available beyond what Rangers can recoup this month.
There remains deep frustration within the SPL champions that the short-term thinking of the bank meant they were unable to start negotiating contracts earlier, helping create the current situation. Smith spoke strongly on the issue on Thursday, insisting Rangers 'deserved better' after back-to-back titles helped reduce the debt.
It is believed, though, that the Birmingham bid was accepted without any reference to Lloyds. Instead, there was recognition of the value of the fee, in their current predicament, for a player who can leave for nothing in the summer.
However, that could become academic. Miller has been left to decide what to do, without any external pressure, and is unlikely to take up Birmingham's offer as it stands.
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