The midfielder is out of contract at Ibrox and had been the subject of a £60,000 bid from United last season, an offer which was rejected at the time.
The 18-year-old had been occupied by involvement with the Scotland Under-19 side who were left deflated at the bottom of their Euro Elite group this week, but he is now free to decide his future. Were he to seek a move to Tannadice then a tribunal would decide the fee.
"I want to play football and that will be no different if I move on or if I stay," said Telfer. "I need to go home and have a long hard think about what's best for me. My aim for next season is to push for first-team football, wherever I am."