Rangers are preparing a bid for Newcastle United striker Alan Smith.

The Sun says Smith was at Sunday's Old Firm derby and Gers boss Walter Smith is set to test the water with a £5m bid at the end of the season.

But Toon sources say Smith's £60,000-a-week wages could be a stumbling block for the Scottish champions.

Keegan wants Ibrox defender Carlos Cuellar and will push for a swap deal to land the Spaniard.