The Observer says Sporting director Damien Comolli - increasingly influential following Juande Ramos' appointment - is understood to have been particularly impressed by Hutton on recent trips north of the border.
Hutton has been outstanding at Ibrox under the guidance of Walter Smith, establishing himself as Scotland's first-choice right-back with a series of athletic, goal-creating performances. Having rebuilt their squad in the close season, Rangers would resist any offer for the 22-year-old.
"We have put together a squad to win back the Premier League title and compete in the Champions League," said an Ibrox source. "Alan would not be for sale whatever the money."