BILLIONAIRE Mike Ashley is in advanced talks with Rangers chief executive Charles Green about buying up to 10% in the club and forming a joint venture to sell its replica kit through his Sports Direct retail chain.

A source told the Evening Times last night that a deal between Newcastle United owner Mr Ashley and Mr Green is expected to be completed "in the next few days".

Mr Ashley, a controversial retail tycoon who has had a rollercoaster relationship with the City and Newcastle United fans, has deep pockets.

His near-69% stake in Sports Direct, which has defied the economic downturn as rivals including JJB Sports have struggled, is worth more than £1.2billion.

Mr Green led a consortium which bought Rangers' assets for £5.5million from liquidation in June.

One source said the price of a 10% stake in the club would be "like chicken feed" to Mr Ashley.

In 2006, JJB Sports signed a £48m deal to sell Rangers' merchandise on an exclusive basis for 10 years. Sources highlighted a belief that this contract would have lapsed with Rangers' fall into liquidation, ahead of Mr Green's purchase of its assets.

A spokesman for Mr Ashley said of the deal: "It is speculation and we will not comment on commercial matters."

Sports Direct has in recent times been faring significantly better than JJB Sports in a cut-throat retail sector.

A source familiar with Mr Ashley said: "Mike has a great business there. He certainly knows what he is doing on the merchandising, on the logistics front."

A spokesman for JJB Sports said: "We continue to work with the Rangers owners."