Smith is offering midfielder Alan Gow on top of the money and Burnley boss Owen Coyle is close to accepting the Ibrox package at the expense of their Old Firm rivals.
Burnley's Kyle Lafferty makes the tackle for which he received a red card against Arsenal
But Rangers could face losing defender Carlos Cuellar, with Newcastle ready to firm up their interest in the Spaniard.
Kevin Keegan has repeatedly been impressed by Cuellar and Newcastle desperately need to strengthen the heart of their defence.
Keegan has limited funds but could bid around £5m and hope Smith, who needs to buy players himself, will take the offer.
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London gets ready for the Diamond Jubilee - in pictures
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EXCLUSIVE: I won't play with Joey Barton, says Adel Taarabt
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Diamond Jubilee: Boat by boat, here is where to watch the Queen's Thames flotilla - VIDEO
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Duchess of Cambridge is pretty in pink at her first Buckingham Palace garden party
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News pictures of the day
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Locked up and banned: The Tube drunk whose vile racist rant was caught on film (video)
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London 2012 Olympics: Raising the bar and the Games haven't even started yet. Price of toasting Team GB is £6 a pint! -
Timebomb ticking in Thames Estuary could put Boris Island plans in jeopardy -
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‘We will form a human barricade to keep missiles off our homes’
Why I think doctors are right to strike 
Family pay tribute to the London man who gave his life to save a five-year-old girl from drowning 
Eton schoolboys fly Games flag on Everest 
Horror on the 5.53! Commuter dragged 200 feet after getting hand trapped on train 
Shrimpy's - review 
The O2
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Celebrate with MARTINI®
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Rock star
Happy anniversary
Victoria Coren
Summer party
Diamond Jubilee
Glamour Awards
Garden party
First review
Fair-weather goths
Dog save the Queen
