Rangers boss Walter Smith has admitted interest in Everton attacker James McFadden.

"McFadden is a player we would be interested in," said Smith. "No club wants to sell its best players in the January window and we won't be signing anyone unless it is someone who can improve the team."

Everton chief executive Keith Wyness has revealed the Blues are monitoring the situation closely but remain determined to keep hold of McFadden.

"We have heard from several clubs regarding James McFadden's availability," said Wyness. "We are monitoring the situation but our position remains the same and that is that James remains a valuable member of our first team squad."