Rangers are confident of agreeing a permanent deal with midfielder Steven Davis this summer, Football Insider understands.

The Northern Ireland international, 34, returned to Ibrox for a second spell in January on loan from Southampton until the end of the season.

Davis’ form has been mixed but a club source has told Football Insider that Rangers are keen to convert the Irishman’s deal into a full-time one that runs for at least another year.

Steven Gerrard and his staff believe Davis still has much to offer as a senior professional of experience and pedigree who is an excellent example to the club’s younger players.

The central midfielder has made 14 appearances while on loan after slipping to the fringes at parent club Southampton.

He has taken some time to get up to speed at Ibrox, but has showed glimpses of his quality over the last six weeks, starting three of the last four Scottish Premiership fixtures.

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Davis’ contract at Southampton ends in the summer and that will provide the catalyst for converting his loan, which the Belfast Telegraph report is worth £12,000-a-week, into a permanent transfer.

In other Rangers transfer news, it can be REVEALED that the club are in talks to terminate the contract of a £20,000-a-week Ibrox player.