Walter Smith has warned a takeover of Rangers could spell the end of his second spell as manager.

And Smith insists he would be "happy" to leave if his departure is in the best interests of the club, who yesterday confirmed they had received "tentative enquiries" from potential purchasers.

Smith's current contract expires in January and he is prepared to work without one until a buyer can be found.

But once the club is sold, he is ready to be told his services are no longer required.

"If a new owner comes in, he might want to change the manager," said Smith, who revealed his concerns on Saturday that Rangers' spending was now being controlled by Lloyds Banking Group.

"There's no point me doing anything other than what I'm doing at the moment until the club's situation has cleared up.

"We said in January that the players were up for sale so how can the manager then say he's in a safe position when the club are in this situation?"

He added: "Would I work without a contract?
"Well, I would if I'm asked. They would need to ask me first. There's no point me saying anything about it.

"My contract expires in January and in the normal run of circumstances, someone would leave then. So if the board ask me to stay on, I would consider it if the club's circumstances have not changed.

"The club have been quite straightforward on the situation and that applies to management as well.

"My contract runs out in January because I signed a three-year deal when I came in, simple as that. If the people running the football club just now ask me to stay on because they've not got a buyer, I would consider that.

"If there's a new buyer and they want someone else to take charge then I'd be happy to go, as long as it's the best thing for Rangers."

Rangers yesterday confirmed they had yet to receive a formal offer for the club.

The Glasgow giants issued a statement in which they also insisted they would not be forced to sell any players in the January transfer window.

But there was an absence of any commitment to invest money in improving a squad which has not seen a single player bought for more than a year.

The Ibrox club said on their official website, www.rangers.co.uk: "While there have been tentative enquiries regarding the sale of the club, there are none that have realised an offer.

"It is important to highlight the statement issued by Lloyds Banking Group to the press on Saturday evening, that 'Lloyds Banking Group recognises the importance of Rangers Football Club to its supporters, shareholders and the wider football industry in Scotland. The bank continues to be very supportive of both the club and the board as they manage the business through the more difficult economic conditions currently prevailing'.

"As such, there is no need for the club to sell assets during the January transfer window."