Following Rangers' shock elimination from the UEFA Champions League last week, Cuellar was tipped to leave the club.

"This has come as a surprise and I am disappointed," Smith told the club's official website.

"Carlos Cuellar has been a great player for the football club and inevitably there has been speculation about him playing in the Premiership.

"The club has received a substantial uplift in fee and we will now reinvest in the team."