Rangers are considering a £1million loan deal which would see the controversial arrangement with investment group Laxey Partners cancelled, the Ibrox club have confirmed.

There was outrage from a section of the Light Blues support last week when Rangers confirmed they had accepted a £1.5million loan in total from Sandy Easdale, director of the football board, and Isle of Man-based Laxey Partners, to be used for working capital over the coming months.

The loan is secured against the club's Edmiston House and Albion car park facilities, and while Easdale's £500,000 loan is interest-free, Laxey stand to make a £150,000 profit in either money or shares by the time their £1m is repaid by the agreed date of September 1.

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However, Gers fan and businessman, George Letham, is reported to have told Rangers that he is "happy to replace the Laxey loan, on condition that it is cancelled, with no penalty and that any security over property offered to Laxey is also cancelled" and the club is now looking at that offer.

Letham was also quoted in The Rangers Standard website saying that he was prepared to accept £75,000 in interest.

He said: "It is my intention to convert this interest into shares as I have no wish to take cash out of the club. If the club are unable to convert the interest to shares, then any cash sum I received from the loan would be reinvested into the club via a future share issue to further the cause of fan ownership.

"My only motivation in this is to ensure that the club is secure, has as much involvement as possible from those who care about it and that its vital assets remain available to it at all times. I am making this offer public in the hope that a degree of transparency can be brought to this process for the fans and hope that the board will give my offer due consideration."

After the loans became public last week, the Rangers Supporters Association, Rangers Supporters Assembly and Rangers Supporters Trust expressed their concerns.

The Ibrox club announced a £14.4million loss in the 13 months to last June but chief executive Graham Wallace insists that Rangers are not facing the threat of a second administration.