Celtic have agreed a deal with Derby County to sign Kris Commons after Rangers ended their interest in signing the attacker.
Commons is out of contract at Derby at the end of the season and Rangers boss Walter Smith revealed earlier in the week that he had enquired about the Scotland international.
However, speaking after the Gers' 2-0 win at Hibernian on Wednesday evening, Smith confirmed the Scotland international would not be heading to Ibrox.
Smith said: "There is nothing in that one, that one's finished with by the looks of things. There is nothing else for us to report on transfers."
The former Nottingham Forest player is now set to link up with Rangers' Old Firm rivals Celtic after a fee, believed to be £300,000, was agreed with Derby.
The Rams' chief executive Tom Glick has confirmed that Commons is now heading for talks at Parkhead and that Derby boss Nigel Clough can reinvest the money recouped from the sale.
Glick told the Derby Telegraph: "We received and accepted a bid from Celtic for the transfer of Kris and we have given both the player and Celtic permission to talk personal terms.
"We understand that should be happening very soon, if it has not already happened. I do not know the timetable but I expect Kris will be in Glasgow on Thursday.
"The deal is not completed but whatever funding comes in from the deal is available immediately to the manager or whenever he should choose to invest it.
"We are constantly looking at options to improve the squad. Specifically, we are focused right now on attacking options."