Sources: Rangers preparing to finalise 'bargain' James Penrice deal after agreement

Rangers are preparing to land a "bargain" deal for James Penrice if they trigger his option to buy, sources have told Football Insider.

The 27-year-old has been outstanding since his arrival on loan from AEK Athens, particularly in last weekend's 3-0 win against Celtic where he was widely praised.

Sources say the deal is considered a "bargain" for the Ibrox club given the level of performances he has already shown this season as a key part of Derek McInnes' side.

As I revealed on the latest edition of Football Insider's Transfer Insider podcast, Rangers will pay less than £1million to sign Penrice if they choose to come the end of the season.

Reports elsewhere have pinned the exact fee at £800,000, and getting a player of the left-back's quality for a six-figure fee will be seen as a fantastic piece of business at Ibrox.

Should Penrice continue his strong run of form under McInnes, making his stay permanent will be a no-brainer for Rangers, and plans are being put in place for that eventuality.

Will Rangers sign James Penrice on a permanent deal?

Football Insider revealed on 18 September that Rangers have plans to trigger Penrice's permanent signing and believe his long-term future will be in Glasgow.

The Ibrox hierarchy believe they have pulled off something of a coup in their move for the left-back, and have addressed an area which has been a concern for years.

Penrice's early-season form has already set the wheels in motion for a permanent move, and with the fee set at less than £1million, there is a belief it will be completed.

Speaking on the Transfer Insider podcast, I explained: "It would be a no-brainer for Rangers to trigger that option to buy James Penrice now.

"Penrice has come in and had a big impact at Ibrox since his arrival from AEK Athens. I think he's one of the first names on the team sheet for Derek McInnes right now, the way he's performing.

"So look, there is the option to buy the left back at end of season and I'm sure Rangers will be willing to take it up because I believe it's under £1million.

"That would be a bargain for Rangers to sign Penrice with that option to buy for less than £1million.

"So it looks like Penrice is really thriving at Ibrox and obviously Rangers are very happy with this output as well so I think it would be a straightforward deal to get done."

Which other clubs were interested in Penrice?

Rangers' delight at getting a deal over the line for Penrice, even initially on loan, came as they were far from the only club in Scotland or abroad tracking the left-back.

McInnes' side moved quickly ahead of their rivals to land the defender, who played under him during their time together at Hearts and are now reuinited at Ibrox.

That came after Football Insider reported that Celtic viewed Penrice as a key target in their efforts to strengthen their back line during the summer transfer window.

Martin O'Neill had been looking to add strength in depth at left-back, where Kieran Tierney is currently the first choice, but ultimately missed out.

That will make the deal even sweeter for Rangers, as if his strong performances and the potential cut-price fee involved was not already enough of a draw.