Fulham midfielder Steven Davis' £3 million move to Rangers is on the verge of collapse.

The Daily Mail says the Northern Ireland midfielder was all set to complete a permanent switch to Ibrox, after making 12 appearances on loan for Walter Smith's side last season, following agreement between the clubs on a fee.

But the deal stalled over a financial hitch which is believed to be between Davis and Fulham.

Both parties were desperately trying to resolve the problem on Tuesday, with Smith looking on anxiously after earmarking the 23-year old's poise and workrate as the qualities needed to help Rangers recover from a stuttering start to the season.