Portsmouth administrator Andrew Andronikou has confirmed talks are ongoing regarding a deal to sell Tommy Smith to Rangers.
Smith was a target for the SPL champions earlier in the summer when Pompey rejected a 'derisory' bid believed to be in the region of £300,000.
Rangers have now gone back in for the 30-year-old as Ibrox boss Walter Smith seeks to bolster his attacking options before the start of the new season.
A deal for Rapid Vienna front man Nikica Jelavic is in the pipeline and former Watford player Smith could also head to Scotland.
Andronikou told The News: "There has been dialogue and that will continue. We'll see where it goes."
Smith joined Pompey from Watford last summer, but has scored just once in 19 appearances during his time at Fratton Park.
He started the club's opening day defeat at Coventry City last Saturday and has also been linked with a £1.5million move to Queens Park Rangers.