Rangers are poised to offer Nacho Novo a new one-year contract.
Novo cost former Rangers boss Alex McLeish £450,000 in 2004
"We're in discussions with Novo's agent and are happy to offer him a new deal because we would be pleased to keep him," said Ibrox boss Walter Smith.
"It's now a question of whether he wants to stay while not getting a regular game, and whether he wants to be in the same position next season."
Spanish striker Novo was signed by Alex McLeish from Dundee in 2004, but faces
competition for a first team place.
Novo, who is currently out injured with a dislocated shoulder, is only one of several forwards currently at Smith's disposal.
Jean-Claude Darcheville, Daniel Cousin, Kris Boyd and Steven Naismith are all vying for regular starting slots with the Light Blues.
And Smith explained: "There is no point in me saying to someone, 'You will be in the team all the time,' if then he finds himself on the bench.
"So when you are talking to players, you always outline the worst-case scenario. That is where you've got to start."